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Location-based services that allow marketers to connect with consumers wherever they are have long been considered the ideal in advertising. eMarketer is predicting that the opportunity will grow significantly in coming years, with the number of consumers using such services growing to 486 million by 2012, up from 18.9 million in 2007 and 63 million this year.
The growth in location-based services will give advertisers the chance to improve upon their ability to reach consumers at the “last three feet of a transaction,” eMarketer writes.
Still, significant hurdles exist for advertisers in making location-based services a standard part of the mobile marketing mix. One particular challenge is the privacy issue - both real and imagined. Consumers fear being tracked and having even minor activities recorded. “But once the privacy issues are sorted out, the payoff for marketers will be the ability to instantaneously interact with consumers as they accomplish real tasks in the real world,†says John du Pre Gauntt, senior analyst at eMarketer and author of the new report, Mobile Location-Based Services.Â
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