LBS promises big business opportunities
VALUE ADDED SERVICES| April 25, 2012, 10:50 a.m.
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% 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 recognize the value of sharing their location to benefit from a range of services.
The key findings, released as a set of interactive visualizations (www.tnsglobal.com/mobilelife) show that the services and apps people use vary considerably from region to region.
Almost one fifth (19%) of the world's six billion mobile users are already using LBS, with more than three times this number (62%) aspiring to do so in the future.
Navigation with maps and GPS is currently the most popular motivation behind the LBS uptake (46%), but there is growing interest in more diverse activities, with 13% of current social network users 'checking-in' through platforms like Foursquare, or Facebook Places – a 50% uplift on 2011.
LBS users are increasingly using services to enrich their social lives, with one in five (22%) using it to find their friends nearby. Around a quarter use the technology to find restaurants and entertainment venues (26%) or check public transport schedules (19%) and 8% to book a taxi.
Savvy LBS users have realized that there is something to be gained from sharing their locations with brands and retailers – with one in eight (12.5%) sharing their location in exchange for a deal or special offer.
Beyond current users of LBS, a third of people globally (33%) who already or would like to use mobile voucher coupons, highly rate receiving deals when they are nearby a store that they like. One in five mobile users (21%) stated that they find mobile advertising interesting if it is offering them a deal near their current location.
James Fergusson, Global Head, Digital & Technology Practice, at TNS, explained: "We are really starting to see location based services 'come of age'. People are realizing 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."
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% stating it as the top reason to share their location, compared to only 11% in India. Finding friends via LBS falls to just 9% in North America and only slightly higher in Europe at 20%.
Applications of LBS also differ widely around the world. In the technology-saturated markets of developed Asia 36% of people use location services to find restaurants and entertainment venues nearby, whereas in China this falls to 17%. This puts Chinese people just ahead of Sub-Saharan Africa, where 10% of LBS users use it to find places to go out.
James Fergusson 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."
MORE VALUE ADDED SERVICES NEWS
Ericsson announces Emergency Wallet to support humanitarian responseEricsson has committed to developing Ericsson Emergency Wallet, a mobile financial services solution, for deployment in the immediate aftermath of disaster or crises to support humanitarian organizations and affected populations. Read More
Hello Paisa clinches top African Fintech spot at Innotribe Start-up challengeLow cost international money transfer company Hello Paisa was named the number one Fintech Company in Africa during the SWIFT African Regional Conference in Mauritius this week. Read More
Ghanaian diaspora embrace MTN Mobile Money when sending home with WorldRemitMTN Mobile Money has become the fastest growing method of receiving WorldRemit international money transfers in Ghana. Read More
Ghana’s first mobile-based nano lending scheme launchedAirtel is partnering with Fidelity Bank and Tiaxa will provide instant access to Nano loans up to GHC 200 to Airtel customers who qualify for the service through the Airtel Money platform. Read More
Airtel, Flickswitch launches first business SIM management service in KenyaAirtel has partnered with Flickswitch International, a leading provider of self-service solutions for enterprises to launch an enterprise SIM management service in Kenya. Read More
Airtel, Facebook to launch Free Basic Services in NigeriaBharti Airtel Africa has announced that it has launched Free Basics in Nigeria in partnership with Facebook. Read More
Safaricom pays out Kshs.152m in Skiza Tunes royaltiesSafaricom Limited has released Kshs.152 million to Collective Management Organisations (CMOs) and Premium Rate Service Providers (PRSPs), for payment to artistes whose music is sold through the company’s music platform – Skiza Tunes. Read More
Opera Mini introduces native ad blocker for Android usersOpera Mini has announced the launch of its built-in ad blocking system operating on its browser for Android. Read More
SimbaPay announces single money transfer of up to $45,000 to AfricaSimbaPay says it is revolutionizing the remittance space through its official announcement of raising the single transaction limit to a whopping $45,000. This is substantially higher than the previous transaction limit of $3,000. Read More
FEATURED STORYGovernment should encourage youths in ICT early
Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.
COMPANY NEWSEnhancing your security posture to fight new ransomware threats
Petya ransomware is proving to be one of the top cybersecurity stories of 2016.Arbor stops malware in its tracks
There is always a substantial amount of banking trojan activity taking place, however, recent developments have intensified the threat landscape.