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A quarter of users of LBS use them to find restaurants and entertainment venues

25. April 2012
TNS reveals big opportunities for business as location-based services go mainstream
A quarter of users of LBS use them to find restaurants and entertainment venues

Location-based services (LBS) have topped the global league as the mobile feature set to grow the most, after world leading insights consultancy TNS revealed over 60 per cent of those that don’t yet use the service globally want to start using them.

TNS’s annual Mobile Life study – which explores mobile use among 48,000 people in 58 countries – shows the majority of people around the world now recognise the value of sharing their location to benefit from a range of services.  

 

Almost one fifth (19 per cent) of the world’s six billion mobile users are already using LBS, with more than three times this number (62 per cent) aspiring to do so in the future. Navigation with maps and GPS is currently the most popular motivation behind LBS uptake (46 per cent), but there is growing interest in more diverse activities, with 13 per cent of current social network users ‘checking-in’ through platforms like Foursquare, or Facebook Places – a 50 per cent uplift on 2011. 

LBS users are increasingly using services to enrich their social lives, with one in five (22 per cent) using it to find their friends nearby.  Around a quarter use the technology to find restaurants and entertainment venues (26 per cent) or check public transport schedules (19 per cent) and 8 per cent to book a taxi. 

Julián Atienza, Mobile Life director in Spain, explained: “We are really starting to see location based services ‘come of age’. People are realising that sharing their location often offers some kind of reward in terms of a discount or deal. It is the combination of time and context – directing people towards a deal when they can easily redeem it – that unlocks a powerful tool for marketers to develop precise targeting approaches.”

 

A complex map of global use

While the study has shown an increasing willingness to engage with LBS, there are also significant variations in people’s reasons for embracing the service across different markets

Of all current LBS users, Latin Americans most use the feature to find friends, with 39 per cent stating it as the top reason to share their location, compared to only 11 per cent in India.  Finding friends via LBS falls to just 9 per cent in North America and only slightly higher in Europe at 20 per cent.

Applications of LBS also differ widely around the world.  In the technology-saturated markets of developed Asia 36 per cent of people use location services to find restaurants and entertainment venues nearby, whereas in China this falls to 17 per cent. This puts Chinese people just ahead of Sub-Saharan Africa, where 10 per cent of LBS users use it to find places to go out.

Julián Atienza  continued: These regional variations highlight the importance of having a targeted strategy when it comes to location based marketing. LBS offers marketers an unprecedented level of engagement and targeting, however it has to be done in line with how people in individual markets want to engage with brands to avoid being intrusive. Where brands get it right, we have seen significant rewards in terms of brand engagement, loyalty and sales.”

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