America News: LBS generates 51% of mobile application revenue, says Telephia

America News:  LBS generates 51% of mobile application revenue, says Telephia

With GPS available on more new mobile devices, consumer demand for location-based services is growing to such an extent that, in the US, LBS accounts for more than half of all mobile application revenue.

According to consumer research company, Telephia, $118 million in revenue was generated by around thirteen million people downloading mobile applications on their phones during the second quarter of 2007.

51% of that revenue was generated by LBS, the majority of which was navigation.

With an average monthly price of $9.23, LBS applications command a healthy price premium compared to other downloadable mobile applications like maps/directions ($3.95), music ($4.99) and weather ($3.82).

While the selling price for LBS applications is roughly 180% of industry average, overall consumer penetration for mobile applications hovers around 5%, compared with penetration rates of 7-13% for other downloadable content like games, ringtones and premium SMS.

According to Telephia’s research, there are approximately 130 million GPS-capable handsets in the US, and Networks in Motion president & CEO Doug Antone says that increasing consumer awareness is creating enormous potential for even greater LBS growth.


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