Location-based social applications, such as foursquare and Gowalla, have gained the attention of the media for their entertainment and marketing value, though only 16% of Americans are aware of them, according to Forrester Research. Only 4% have ever used such applications, 3% know of them because their friends use them, and 9% have heard of them but never used them.
Location-based social apps allow users to “check in” to locations online, find friends who are nearby, and communicate with people in the same area. In some cases, they can also earn points and redeem discount offers.
As with other social media, young Americans are leading the way with location-based apps: Gen Yers (aged 18-29) account for 44% of users, though only 22% of the U.S. population, and Gen Xers account for 42% of users, but only 25% of the population. Users are also more likely than average to be male (78% vs. 49% of the U.S. population), wealthy (average annual household income of $105,000 vs. $79,500 for the U.S. overall), and educated (70% have a college degree, vs. 51% of the U.S. overall).
Location-based app users are more likely than average to use their cell phone to research information before making decisions, such as:
• Choosing what movie to see or restaurant to go to (27% vs. 7%);
• Choosing a financial investment, such as a stock or mutual fund (23% vs. 3%); and
• Buying a big-ticket item, such as a TV, refrigerator, or car (21% vs. 3%). [Online, Telecommunications]
Source: “Location-Based Social Networks,” Forrester Research, Melissa Parrish, Analyst, 400 Technology Sq., Cambridge, MA 02139; 617-613-6000; mparrish@forrester.com; www.forrester.com. Price: Call for information.
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