At least a few consumers think location-based ads are useful (survey)

minority-reportThere’s a big, untapped audience for location-based advertising, where businesses can send offers to the cell phone’s of nearby shoppers, according to a new survey conducted by Harris Interactive. The study was commissioned by 1020 Placecast — which is, naturally, a location-based advertising company.

Before diving into the results, it’s probably best to get this caveat out of the way: The data was collected via an online survey without probability sampling, meaning you should take these numbers with a grain of salt.

Anyway, Of the 2,029 adults surveyed, Harris and 1020 Placecast found that 27 percent were at least somewhat interested in receiving cell phone alerts about sales, assuming it was an opt-in system. Yes, that means the majority of consumers aren’t interested, but since only 1 percent of the respondents are actually receiving ads right now, that leaves a lot more people who wouldn’t mind signing up. And younger consumers are more receptive: 42 percent of 18- to 34-year-olds said they were at least somewhat interested.

The chart below shows what the “yes on alerts” crowd said they’d want to hear about:

mobile-shopping-categories[top image from the film Minority Report]

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About the Author, Anthony Ha

Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.

  • Does this survey not prove the success of sociogeographical tools like FourSquare?
  • I definitely would not want any ads on my cell phone. Don't we see enough of that on tv and the internet?
  • This is going to become a more and more effective form of advertising as smart phone usage continues to grow.