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Forrester thinks online marketers should forgo Foursquare

Forrester just released a study that concludes location-based mobile apps such as Foursquare, Gowalla, and Loopt have too few active users to justify investment by most major brands.

According to the study only 4% of US online adults have ever used location-based mobile apps and only 1% of that group update these services more than once a week.  The one sweet spot Forrester cites are males between the ages of 19 and 35 – this demographic accounts for 70% of the location-based mobile app users.  In addition to being up to 20% more likely to consult their phones prior to a purchase they are also very open to receiving mobile coupons and offers.  Verticals that should be targeting this demographic through advertising on mobile apps include gaming, consumer electronics, and sportswear.

This approach seems short-sighted – aren’t there some females between the ages of 19 and 35 who might find gaming, consumer electronics, and sportswear coupons and offers intriguing?

Seems there is a huge online marketing opportunity for focused testing on location-based mobile apps designed to expand this sweet spot and extend the reach of additional verticals.

Here’s a link to an article on this study in Advertising Age.

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