In a recent report from BI Intelligence on location-based data, we analyze the opportunities emerging from this new local-mobile paradigm. LBS have evolved far beyond smartphones and basic proximity marketing. Throughout this report, we’ll look at the new LBS frontiers such as profile targeting and audience-building.

We specifically examine how location-enabled mobile ads have generated excitement, recommend the top local-mobile strategies for mobile marketing, look at how location-based features have boosted app engagement, and finally: we demystify some of the underlying technologies and privacy issues.

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Take a look at this infographic: 

A pure GPS approach and the “lat-long” tags it generates is considered the gold standard for location data, but that’s not the only method in use. There are at least four other methods, sometimes used in combination, for pinpointing location:

• Cell tower data: When GPS signals can’t reach the device’s GPS chip, which often happens indoors, the device will often report its location by communicating with the cell tower it’s connected to and estimating its distance. It’s less accurate than pure GPS data.
• Wi-Fi connection: It’s an accurate method but requires an active Wi-Fi hotspot. Wi-Fi locations are matched with GPS coordinates. It can pinpoint a user to a specific storefront, which is why many retailers are rolling out free public Wi-Fi to enable in-store mobile ads.
• IP address: Location can be gauged by the IP address associated with the data connection. The accuracy of this approach varies between carriers, and is far less reliable than the above methods.
• User-reported: When users sign up for emails or register for mobile apps and services, they often enter their addresses and zip codes. This data can be translated into GPS coordinates to build a geolocation profile of a single user or user base.

As we detail in our report, there are many opportunities emerging from this new local-mobile paradigm, including location-enabled mobile ads, search, and features that boost engagement for apps.

by Helen Leggatt

When RetailMeNot partnered with The Omnibus Company to survey 1,067 U.S. consumers over the age of 18 during April this year, they found what ever coupon website wants to hear – coupons are popular with mobile users.

More than three-quarters (78%) of those surveyed had done some sort of research on their mobile during the month preceding the survey, and 54% had made a purchase using their mobile device during the same period.

Of interest was that mobile coupons are effective at driving consumers in-store. About half (51%) of respondents said they would be more likely to buy products in-store if they received a mobile coupon while in close proximity to the store. Younger mobile users (18-34) were more likely to do so (63%) than those age 35+ (43%).

Furthermore, respondents indicated that if they were already in-store when they received a mobile coupon they would be 61% more likely to make a purchase.

“There’s no doubt that today’s consumers are more empowered than ever by smartphone technology, and retailers can recognize and enable those behaviors or lose business to competitors who understand the power of mobile marketing.” says John Faith, senior vice president of external affairs for RetailMeNot.

Today, the number of U.S. smartphone users using mobile coupons is 29.5 million, a significant rise from 2010 when 7.4 million used mobile coupons. By 2014, this figure is expected to rise further to 47.1 million, according to a recent BI Intelligence report.