Smart phones make smart choices for Hong Kong people: Location Based Services coming of age

May 7, 2012 - PRLog -- Saving time and money are among the key motivators for Hong Kong’s busy people and the mobility afforded by smart-phones, combined with Location-Based Services (LBS), is having a significant impact on people’s decision-making. Location-Based Services, which identify a smart-phone’s location, have become popular services for smart-phone users, with Hong Kong’s usage outstripping all other global markets, according to insights consultancy TNS.

LBS’s also top the global league as the mobile feature set to grow the most. 86% of mobile phone users that don’t yet use the service in Hong Kong want to start using them, compared to the global average of 60%.

TNS’s annual Mobile Life study – which explores mobile usage amongst 48,000 people in 58 countries – shows the majority of people around the world now recognise the value of sharing their location to benefit from a range of services, to supplement the mobility they already enjoy.  In doing so, smart phone users can save time as they spend less time searching for location-related information. They can save money by doing instant price comparisons. Or they can make a trade-off – an online cinema reservation, which can be made from a smart-phone, costs more, but saves time.

Location-based services move into the mainstream

61% of Hong Kong’s mobile users are already using LBS, compared to the global average of just 19%. Navigation with maps and GPS is currently the most popular motivator behind LBS uptake in Hong Kong (29%), but there is growing interest in more diverse activities, with close to 20% of mobile phone users in Hong Kong ‘checking-in’ through platforms such as Foursquare, or Facebook Places – a vast increase from just 3% in 2011.

Hong Kong LBS users are increasingly using services to enrich their social lives, with 12% using it to find their friends nearby. 29% of Hong Kong LBS users use the technology to find restaurants and entertainment venues, 27% to check public transport schedules and 6% to book a taxi. (Please refer to chart)

Savvy LBS users have realised that there is something to be gained from sharing their locations with brands and retailers – with about one in nine sharing their location in exchange for a deal or special offer to save money.

Beyond current users of LBS there are opportunities as well: almost a third of all mobile phone users state that they find mobile advertising interesting if it is offering them a deal near their current location.

Marc De Lange, Director – Digital Practice at TNS, explains: “We are starting to see location based services ‘come of age’. People are realising that sharing their location often offers some kind of reward in terms of a discount or deal. It is the combination of time and context – directing people towards a deal when they can easily redeem it – that unlocks a powerful tool for marketers to develop precise targeting approaches.”

“There are also enormous regional variations which highlight the importance of having a targeted strategy when it comes to location based marketing. LBS offers marketers an unprecedented level of engagement and targeting, however it has to be done in line with how people in individual markets want to engage with brands to avoid being intrusive. Where brands get it right, we have seen significant rewards in terms of brand engagement, loyalty and sales.”