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1、Lost in Geolocation,Why Consumers Havent Bought It and How Marketers Can Fix It,by Will Reese and Jamie Beckland,Mobile Marketing Report:Spring 2011,2,Table of Contents,Table of Contents.2Introduction.3Executive Summary.4Findings.5Perceived Benefits.5Market Adoption.8Barriers.9Users.12Merchant Acces
2、s.15Conclusions&Recommendations.16Appendix:Methods.19References.21,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,3,Introduction,Location-based services like Foursquare have been a source of fascination among technophiles for sometime now.But to date they
3、 have failed to achieve widespread adoption among smartphone users.Have mainstream users begun to use geolocation services,or are the people using them still primarily earlyadopters?If the more general audience of smartphone users is in fact holding back,then why is that?To find out,White Horse cond
4、ucted a survey of 437 US smartphone users from February 16-23,2011.We explored the following:,whether location-based services(like Foursquare and Facebook Places)are reaching thetipping point,what barriers might be preventing acceptancewho is using these services now,how marketers might address barr
5、iers,and engage consumers,to better utilize the medium asit matures,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,4,Executive Summary,Our research generated four key findings:,Location-based services have not yet reached the tipping point.The chief barri
6、ers today are a lack of clear benefit and privacy fears.Users are mostly young,active contributors to social networks.,Marketers will need to create and test new geolocation experiences that,are not generic but relevant to a particular brand and audience.,2011 White Horse Productions,Inc.Content may
7、 not be reused without permission.|877.471.4200,5,Findings,The population sampled consists of US smartphone users aged 14 or over.Throughout the documentwe will refer to three groups of respondents.,User:has used one or more of the geolocation apps,Non-user:does not presently use any of the geolocat
8、ion apps,Aware non-user:a subcategory of non-user who knows about the apps but does not use them,Perceived Benefits,Today,location-based apps are fundamentally a type of social networking tool.,The majority of people familiar with these apps say that the most important benefit people willexperience
9、is“social connection”(56%,n=253).They also say that the key benefit for them,personally,is“connection to other people I know or could meet”(41%,n=253).This perception holdstrue regardless of the particular location-based app with which people are familiar.,Surprisingly,discounts and deals are not st
10、rong conscious motivators.Nor are gaming andentertainment.,Only 6%of people familiar with these apps feel that the benefit to most people is“discounts,”andonly 8%believe that the benefit to them personally would be“savings in discounts and merchantrewards.”And while apps like Foursquare and Gowalla
11、have incorporated game mechanics as keycomponents of the experience,consumers do not seem to regard“entertainment”and“achievingmilestones in a game”as among the most important benefits.,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,6,What is the most imp
12、ortant benefit of these apps to people who use them?(n=253),7%,6%,4%,3%3%,1%1%,Social connectionInformationEntertainmentDiscounts,They are not beneficial,19%,56%,DiscoveryDont knowIdeas,Other(please specify)What is the most important benefit of these apps to you,personally?”(n=253)Connection to othe
13、r people I,8%17%,6%,4%3%21%,41%,know or could meetFinding a place liked by peopleI trustInsight about my travel ormovement patterns over timeSavings in discounts andmerchant rewardsPractical knowledge of a newtechnologyAchieving activity milestones ina gameOther(please specify),2011 White Horse Prod
14、uctions,Inc.Content may not be reused without permission.|877.471.4200,7,Facebook Places is the“primary”or most frequently used app.As shown in the chart below,42%of smartphone users consider Facebook Places their primary app,while roughly a quarter of the sample each choose Google Latitude and Four
15、square,respectively.Twitter Places,Gowalla,and Whrrl collectively account for only 6%.But true market penetration is a function of consumer engagement,not just gross adoption.Webelieve that Facebook Places has such strong adoption numbers because of the incidental liftprovided by the success of the
16、Facebook mobile app.At the time of this writing,Facebook mobile isthe most downloaded app on the planet.(People have downloaded it from one source,theindependent app store GetJar over 112 million times.)If even a quarter of that number were in theUS,user experimentation alone would make Facebook the
17、 leader in terms of gross marketpenetration.Which of these apps do you use most frequently?(n=169),3%2%,1%,Facebook Places,25%,42%,Google Latitude,FoursquareTwitter PlacesGowallaWhrrl27%2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,8,Market AdoptionThese
18、 services have not yet reached the tipping point among smartphone users.More than half of smartphone users are aware of these apps(56%),but only 39%use them.Most non-users do not know anything about these apps or know very little.Awareness of location-based apps(n=437 smartphone users)Know about loc
19、ation-based,44%,56%,appsDo not know about themor what they do,Usage incidence for location-based apps(n=437 smartphone users),61%,39%,Use 1 or more location-basedappsDo not use location-basedapps,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,9,BarriersTh
20、ose non-users who do know something about them are not yet favorably disposed.We asked people who were aware of but not using geolocation services about their reasons for notusing them.The chart below shows their answers.73%of them gave reasons that were unfavorablerather than favorable or neutral(5
21、7/73).Why smartphone users dont use geolocation apps(n=73)Privacy concernsNo need/interest/benefitRedundant to how I already connectMiscNo time to exploreIntrusive to others/inappropriateLive in a small communityUse someone elses,0%,5%,10%,15%,20%,25%,30%,35%,The chief barriers today are a lack of c
22、lear benefit,and privacy fears.A third of aware non-userscite a privacy issue as a reason for not using the apps(24/73).These non-users share things like:“They sort of freak me out.Im not sure that its good to always let others know my location”(woman,age 20-29,Atlanta GA).“I am concerned(about)unwi
23、ttingly disclosing too much personal info”(man,age 20-29,Paramus NJ).“Its not very safe to constantly let people know where you are.If I want to meet up with afriend Ill text them or call them directly.Someone I dont want to see or a dangerous strangercould follow me if they know where Im at by usin
24、g these types of apps”(woman,age 20-29,El Paso TX).2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,10,Another quarter of non-users simply find the benefits unclear,and consequently,the appsunnecessary.,“Im not sure why anyone would care that I was at a cer
25、tain restaurant,etc”(man,age 40-49,Nashville TN).,“I just dont think its a significant benefit that is worth time,memory space,or data usage”(woman,age 20-29,Richmond IN).,“I dont think people really care about where I am.As I dont care much about where theyare”(woman,age 20-29,Vancouver WA).,Most o
26、thers feel theyre communicating sufficiently with others in their network already.They have Facebook,they have text messaging,and they have voice.Why do they need another wayto connect?,“Facebook has everything I need to connect to people.I do not need to(using another)socialnetwork”(male,age 14-19,
27、Corvallis OR).,“I can stay connected in other ways without having people know exactly where I am atcertain points in the day.I prefer to do what I have to do and interact with people either inperson or without them knowing where I am”(woman,age 20-29,Columbus OH).“I stay connected to people I know i
28、n other ways”(woman,age 30-39 Merrimack NH).,A small group of 20 users indicates that they actually stopped using location-based apps at a certainpoint.Most of these defectors express relatively low confidence that their privacy was secure while theyused them.When we asked,“On a scale of 0-5,to what
29、 extent do you believe your primary app keepsyour privacy secure?”16 of 20 defectors rated the app from which they had defected at 2 or lower.,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,11,Usage frequency is markedly lower than with social networking
30、sites today,which suggests roomfor growth.As a benchmark,the majority of people who use the apps today check-in several times per week,notseveral times per day,as they do social networks.Only 19%of location-based app users check in atleast 1 time per day,as compared to 60%who update their social net
31、working sites with the samefrequency.Interaction frequency(n=171)70%60%50%40%,30%20%10%0%,Location based appsSocial networking sites,No longeruse,interactseveral,interactseveral,interactseveral,interactseveral,times/year,times/month,times/times/dayweek,About 12%of the users stopped using location-ba
32、sed services,but virtually none of them stoppedusing social networking services.2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,12,Users,Users of location-based apps are mostly young,active contributors to social networks.Awareness of location-based apps i
33、s highest among young adults(people in their twenties)andlowest among those over 50.,Which apps do you know about?(n=437),Age is a factor in awareness,but not necessarily in usage.,As shown on page13,the age profiles are similar for users and non-users,but not so for the unaware.While an older perso
34、n is less likely to know about these apps,they are no less likely to have usedthemso long as they have passed the hurdle of awareness.,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,13,Age distribution of app users and aware non-users vs.the unaware(n=437
35、),Non-users tend to be female(65%,or 53/82).,Privacy worries appear to drive this gender divide.The majority of comments concerning privacycame from the women in our survey.,More than 99%of location-based app users also utilize social networks like Facebook.Nearly all users of location-based apps ar
36、e already using some social networking service,such asFacebook,Twitter,or Myspace(99.4%,or 170/171).By contrast,10%of non-users report that they donot use social networks either.(See pie charts on page 14.),86%of location-based app users say they interact on social network services at least severalt
37、imes per week(vs.67%for non-users).,“Interact”means they contribute actively to social networking services,providing status updates,comments,“Likes”and other information.Nearly half of the users contribute at a frequency of 1-5times per day,while only a third of all non-users contribute at that high
38、 level of frequency.,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.4200,1%,14,How frequently do you interact on social network services?,Users(n=171),Non-users(n=266),More than10 times per,9%,4%,11%,10%,7%,day1-5 times per day,8%,32%,Several times per week,26
39、%,49%,15%,Several times permonthSeveral times per year,28%I do not use socialnetwork servicesUsers of dedicated geolocation apps are more likely to consider themselves influential regardingsuch tools than are users of Facebook Places.We asked users to specify,on a scale of 0-5,the degree to which ot
40、hers seek their opinions“when itcomes to new internet or mobile services and tools,such as location-based apps”.Below are theresults for the top-box rankings,cross-tabulated to the app that they listed as the app they usedmost.As shown here,in comparison to Facebook users,16%more Foursquare users an
41、d 12%moreGoogle Latitude users considered themselves influential.Others seek my opinion more than I seek theirs(n=159)60%50%40%30%,20%,34%,46%,50%,Agree(top box:4-5),10%0%,FacebookPlaces,GoogleLatitude,Foursquare,2011 White Horse Productions,Inc.Content may not be reused without permission.|877.471.
42、4200,15,Merchant AccessAt the moment,users dont perceive fair value from granting access to information about theirnetworks.Users of geolocation believe they are giving away a lot of information already.And they are.Butgiven the lack of clear benefits,they feel uncomfortable about this,especially wh
43、en it involvesinformation about their social network.As shown in the table below,the items consumers feel it is most unwarranted to ask them for todayare their“real name,”a“list of their online friends,”and of a“list of places their friends havevisited.”To the extent that a geolocation experience re
44、quires such information,marketers mustmake a strong benefits case must to reverse the current perception of fair value.Information consumers think merchants have vs.what is reasonable to have(n=171 users),90%80%,Have today,Reasonable,70%60%50%40%30%20%10%0%2011 White Horse Productions,Inc.Content ma
45、y not be reused without permission.|877.471.4200,16,Conclusions and Recommendations,Most brands with promising location-based content are better off building thanbuying in.,Third-party geolocation services do not provide the relevance consumers are seeking,according toour study.Location-based servic
46、es have not crossed the innovation“chasm”because people do notyet perceive them to add benefits beyond existing social networking tools.,This means brands must focus on what they uniquely can provide to consumers based on location.They will have to craft experiences that are more relevant and contro
47、lled than those available toconsumers today.By relevant,we mean the experience must add something of value to theconversation with consumers,which will extend and enhance the relationship with their particularbrand.By controlled,we mean that the experience should allow consumers to create networksap
48、propriate to the experience,and to choose the personal information they share according to aclear understanding of the benefits they stand to gain in return.,An outdoor retailer might provide coordinated guidance for local hikes or environmental projects,forinstance,while a bookstore might offer new
49、s of nearby events and signings.Content that bringspeople together,whether delivered through a mobile website or a custom app,ultimately provides abetter connection than a shallow endorsement of check-ins.,Marketers do not need to wait for third-party app developers to pave the way.They already have
50、concrete tools to deliver better location-based experiences,such as White-label geolocationplatforms like Double Dutch,and APIs that deliver location-based mobile content.Brands that getinto the game now and figure out the right mix of incentives can shape the terms of the,conversation.Those that do