Panel: LBS Is Still Largely Over-Estimated, 80% Of US Consumers Have Never Used It

MMW was live today at the Location-based Marketing Summit in NYC (make sure to follow us on Twitter @mobileMW for the latest updates), where numerous panel members discussed the state of LBS and the opportunities and roadblocks that exist.

One data point that panelists were in agreement over was the fact that LBS is still largely over-estimated outside early-adopters.  It was indicated that 80% of US consumers don’t even know what LBS means, let alone actively use it, and that only 1 percent of Online users use LBS.  While it’s daunting from a marketing perspective, panelists also agreed that the industry is ripe for opportunity.

Panelists, including execs from Skyhook Wireless, Placecast, Microsoft, Google and many others, discussed the need for marketers to take small strategic bets with LBS to test the waters as the industry continues to evolve, and save the big bets for after the market matures and clear leaders and platforms have been defined.

Some other interesting tidbits from today’s presentations include stats from Placecast, where CEO Alistair Goodman said geo-triggered ads in the retail space have garnered 25% redemption rates for fashion-related offers and over 65% for fast food.  In addition, there was plenty of talk in regards to hyperlocal LBS largely being a misnomer, instead being dubbed “hyper-relevance” as it relates to mobile location.  In the end, panelists urged marketers entering the location space to ensure value is central element to any campaign.  If an LBS offer is valuable, consumers won’t see it as an advertisement.  This element is what makes location relevance so powerful.