Feature Article

September 25, 2013

Consumers Willing to Give Mobile Location Data to Favorite Brands

Consumers are willing to exchange their location data for SMS or push marketing messages via mobile devices if they are relevant and come from known or favorite brands, according to a survey by Millward Brown Digital. In fact, 80 percent of survey respondents said they would share location data with brands if they have opted-in to receive the company’s mobile marketing text messages.

Marketers might want to take note, since only one in five sent an SMS message last year, according to the study. While the survey results suggest pertinent SMS messages are effective and even welcomed by recipients, it seems to be a tactic underutilized by marketers.

"These findings show that mobile marketers have a tremendous opportunity to utilize mobile messaging as a preferred channel for highly personalized, micro-targeted marketing campaigns," said Michael Becker, mobile evangelist and marketing development for North America for Somo, a mobile solutions company. "They also show that marketers should use the channel with care, that trust and message value are critical to consumers, and that marketers must strategically utilize consumer preference, behavior and location data in their design to ensure effectiveness."

Mobile messaging is the format of choice by many users, with 59 percent of global respondents preferring SMS and push campaigns over other forms of mobile marketing, including video advertising, banner or standard display ads, and e-mail. Also according to the survey, 58 percent of global respondents say they would send a text message to a company to request more information, and 54 percent of global respondents say they would send a text message to a company to enter a competition. 

"As the Millward Brown Digital survey shows, the majority of people today find value in targeted, relevant SMS and push messages sent by a company," said mBlox CEO Tom Cotney. "When consumers are telling you they want to, if not expect to, be contacted just by downloading an app, it would be foolish not to take advantage of that. If you're a marketer, why wouldn't you engage people via the channel and methods they prefer?"

The survey found 68 percent of global respondents and 66 percent of U.S. respondents find SMS or push messages sent to them from a company to be valuable. Also 57 percent of global respondents and 60 percent of U.S. respondents find SMS and push messages more likely to persuade them to make a purchase than other forms of marketing on a mobile device, including advertising commercials or video advertising, banner or standard display advertising, and email marketing messages.

Millward Brown Digital surveyed a collective 1,572 mobile users over the age of 18 who had downloaded an app in the past 12 months in the following countries: the United States, the United Kingdom, Australia, New Zealand, France, Germany, Spain and Italy. The study occurred between July 16, 2013 and July 24, 2013.

Edited by Alisen Downey

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