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Location Based Services & Gen Y: A real catch for Marketers! Location Based Services & Gen Y: A real catch for Marketers!

At the end of august we were on teambuilding with all our InSites Consulting colleagues to a nice abbey somewhere near Brussels. I noticed when I checked in at Foursquare at this beautiful location, that a lot of my colleagues had also done this. I was wondering what it was that urged my colleagues and myself to check in here. Because, trust me, I do not think we want our family and friends to know where we are and what we do when on teambuilding. However, more and more GenY’ers use Facebook Places (although it’s being terminated), Foursquare, Gowalla, or other apps and social media to notify others where they are. Why are they just so eager to share their location?

Sales and promotions

The Mobile Audience Insights report from Wi-Fi hotspot provider JiWire shows that 58%-60% (via: eMarketer) of all of those younger than 34 years are willing to share their location. Privacy issues are not holding Millenials away from using location-based services, primarily because we are just not so concerned with it. The main goal of youngsters for using location-based services when near to a retail or product location in the US is to get sales and promotions, on top also customer reviews and product information is of interest to them. However, most of the time nobody receives specials, tips or pictures. It seems that most brands and companies are not yet using location-based services as a real marketing and sales tool, especially not in the Netherlands or Belgium for that matter.

Gamification

So, what is the purpose of checking in? Gamification seems to be the answer here. How cool is it that you can become the major of a place, or receive a cool badge. Also the leaderboard is a real delight and something to get busy with. This is nevertheless no reason to hold on to using foursquare or facebook places. Although it is cool to share with your friends where you are, see where they are and see whether they have any tips, it will not be enough for the needy Gen Y’ers.

Gen Y is ready

Pyramid research estimates that the worldwide market for location ads will reach $6.2 billion by 2015, which means a growth of 35% from 2010. In my opinion companies need to get going with location based services! Generation Y is not afraid to share their location and ready for cool location based input!

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One Response to “Location Based Services & Gen Y: A real catch for Marketers!”

  1. Carl-Christoph Fellinger

    Yes… but there is a big difference between willing to do something and actually doing it. While you quote the JiWire study with a general WILLINGNESS to share their location of near 60% the actual USE of lbs is down at 12% (compare InSites very own study publication earlier today http://slidesha.re/py3JNz) – and it’s not like they have been around only yesterday. I say lbs can play a good role in campaigning – especially when linked with gamification. But I don’t see permanent services gaining relevant influence in the near future.

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