April 23, 2010

Borrell: Mobile Users Respond To Location-Based Ads, Coupon Biz To Hit $57 Billion in 2014

Borrell Associates are sharing the results of new survey showing one-quarter of U.S. adults have used location-based mobile services. The Mobile Marketing Association survey, conducted in partnership with Luth Research, also found that mobile users are more likely to respond to mobile advertising delivered with location-based targeting than regular ads.

Overall, 91 percent of American adults own a cell phone, according to the survey. Within this group, 26 percent have used a map, navigation tool or some other mobile service that determines their location.

While 10 percent of cell phone owners use a mobile location-based service at least once a week, the number is much higher for iPhone owners at 63 percent.

In addition, Borrell predicts mobile coupons growing from $2.7 billion in 2009 to $57 billion in 2014. Mobile advertising will grow from a $285 million business in 2009 to $11.3 billion by 2014 -- increasing from about one-tenth of total mobile spending to about one-fifth.

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