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May 26, 2010

Juniper Research says that Mobile LBS will be gaining momentum in some commercial markets over the next several years. The research firm expects that local search and information services will be used by about 1.43 billion mobile subscribers in less than four years from now.

Wireless users want to know where they can find their favorite coffee or snack, where their friends are going, what they are doing and where they should go next.

Brands like Starbucks and the Gap recently implemented mobile location-enabled marketing programs with some pretty good success and appear to be leading the way in that segment, at least for now.

According to JiWire, about 62.8 percent of smartphone users reported that they frequently use mobile apps that require them to give their location, and location-based mobile ads have the highest response rates.

Smartphones mostly use GPS signaling technology, which works by constantly monitoring the cellphone signal with or without the consumers' consent and raising issues of privacy.

Additionally, app development is quite laborious as well due to various mobile handset models and operating system differences among more 12 major app stores.

Unlike SMS text messaging, you cannot create an app that works across all phone platforms. So how do brands wanting to get into the hands of as many consumers as possible leverage SMS as mobile LBS?

The solution lies in network-based location techniques, like cell tower triangulation, that utilize the service provider's network infrastructure to identify the exact location of the handset.

Unlike GPS, with cell tower triangulation technology the consumer controls their location sharing because they must manually query their location for the technology to work.

Another great advantage to network-based location techniques is the ability to reach mobile consumers through SMS and thereby significantly broaden the potential brand market.

And with SMS there is no need for numerous platform development. Smartphone apps have a great deal of buzz in the mobile ecosystem but not nearly as much reach as SMS.

Wireless users are already texting up a storm on their phones. All you have to do is reach out and tap in to their conversation.

Overall, mobile phones sold since 2005 have to include some form of location targeting technology, and that's a law requirement.

It also creates a good commercial market for mobile location-enabled marketing. The growing number of smartphones has helped popularize mobile LBS as well.

But today, brands focusing on handset-based location techniques, like smartphone application development, the goal is to reach consumers and upsell whatever it is they are selling.

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Source: Juniper Research.