Location-based mobile services bolstered by acceptance of advertising

The secret sauce for many location-based apps is the hope that users will be willing to have revenue-generating advertising streaming into services as well.

So some data from mobile audience media company JiWire will be a welcome shot in the arm for advertisers and app providers.

The company collected data from 2,000 users across 289,000 US wi-fi locations and found that 53% would be happy to share their current location on a mobile in order to receive relevant advertising.

Good news for advertisers at least.

Furthermore, almost two thirds say they frequently use apps on their smartphones that require them to set a location in order to receive other content.

Inevitably, users (76%) are leaning much closer towards ad-supported free apps rather than paid-for services.

But it will be the engagement issue that determines whether embrace mobile advertising to the same degree as web ads – and here the data is less convincing.

Almost one on four users say they are more likely to engage with a relevant mobile ad, compared to 46% who say it makes little difference – the naysayers coming in at a lowly 16%.

Average time spent using applications on a daily basis:

• More than 2 hours – 17%
• 1 to 2 hours – 23%
• 30 mins to 1 hour – 28%
• Fewer than 30 mins – 32%

Number of downloaded applications on a device:

• Fewer than 10 – 26%
• 10 to 19 – 28%
• 20 to 29 – 23%
• 30 to 39 – 11%
• 40 or more – 13%

Top mobile applications (Q1 2010):

• Social networking – 63%
• Weather – 60%
• News – 60%
• Travel – 45%
• Music/entertainment – 36%
• Games – 36%
• Utilities – 31%
• Sport – 30%
• Business – 29%
• Lifestyle – 20%

Use of public wi-fi (Q1 2010):

• Hotel/resort – 60%
• Cafe – 18%
• Airport – 15%
• Other – 7%