Mobile ads targeted to specific tastes and interests are four times more effective than mobile ads that use time, location or lifestyle as benchmarks, according to new research released by Upstream.
According to the research, users of both feature phones and smart phones respond to personalized offers more favorably than any other kind, including location-based offers. The research also revealed consumer preferences about the kinds of advertising that they receive on their mobile devices. In content preferences, feature phone users and smart phone users diverge. Smartphone users most often cited a preference for ads for content for their mobile devices, whereas feature phone users most often cited a preference for ads from their mobile-service provider. But the research demonstrates that users of both categories of handsets are somewhat underwhelmed by location-based marketing.
“Location clearly is an important aspect in mobile marketing, but we were surprised at the dramatic lack of consumer interest in it at this time,” said Assaf Baciu, Upstream’s vice president of product management. “Right now, people want mobile offers that are personalized to their interests ahead of other more hyped criteria such as time or location.”
The data demonstrated that even consumers using feature-rich smartphones are susceptible to low-tech methods of persuasion like text messaging. Ad channel preferences differed slightly from smartphone to feature phone users. Smartphone users most preferred to receive coupons followed closely by an opt-in text alert or message. For feature phone users, the preferences were reversed.
More in Media

Publishers watch warily as tariffs loom over ad budgets and print costs
Publishers are keeping a watchful eye on the outcome of the sustained macroeconomic shock that will arise thanks to Trump’s tariffs.

Media Briefing: The pros and cons of different AI revenue models for publishers
Here’s a list of some different AI revenue models that publishers are signing, and the pros and cons of each.

Former Substack creators say they’re earning more on new platforms that offer larger shares of subscription revenue
Former Substack writers who exited the platform in early 2024 are making more money on Beehiiv and Ghost thanks to their fixed pricing models.