The global location based advertising market size is anticipated to register a high CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the rising penetration of internet & GPS enabled mobile devices, growing digitalization across industries, and increasing application of consumer data by marketers.
Location based advertising (LBA) is a type of marketing that combines location based services (LBS) and mobile advertising. This technique helps in determining a customer's location and offer location based advertisements to their mobile devices. Furthermore, based on mobile phone signals or cell tower triangulation, LBA targets audiences in a specific geographic area and helps advertisers to tailor the information as targeting can be more accurate.
Moreover, location based advertising has been demonstrated to be beneficial in terms of discovery and purchase to engagement and retention. In addition, LBA allows businesses to target specific client categories with personalized offers, while improving the customer experience for a generation that values quick satisfaction. On the other hand, suppliers of various platforms such as advertising and location services in the LBA market offer freemium apps to induce advertisers to use their core services and charge for more content and features.
The COVID-19 has had a significant impact on a number of businesses, including digital marketing and advertising. Furthermore, the LBA market serving airports and other commuting locations has been impacted for a limited period of time due to global travel prohibitions. However, major players are now rethinking their marketing strategies and examining new ways to run their online advertisements to retain valuable customers.
Market Trends, Drivers, Restraints, and Opportunities
- Growing consumption of social media platforms by users and the transition of marketers from traditional advertising methods to digital platforms is expected to boost the market growth during the forecast period.
- Increasing regulatory actions to ensure consumer safety and rising advancements in marketing methodology are some of the key factors propelling the market expansion in the coming years.
- Rising concerns related to consumer’s privacy and data security is one of the key factors hindering the market growth.
- Growing advancements in communication and navigation technology such as Assisted Global Positioning System (AGPS), rising use of Cell-ID, and increasing Internet of Things (IoT) devices are projected to offer lucrative opportunity for market during the forecast period.
Scope of Location-Based Advertising Market Report
The report on the global location based advertising market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Location Based Advertising Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Types (Pull and Push), Applications (Airports, Public Spaces, Retail Outlets, and Others), and Contents (Multimedia and Text)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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TELENITY; AdMoove; Proximus Mobility, LLC.; Emodo (Placecast); Near Pte Ltd.; Facebook Inc.; IBM Corp.; Foursquare; GroundTruth; and Google.
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Location Based Advertising Market Segment Insights
Push segment is anticipated to grow at a rapid pace
Based on types, the global location based advertising market is bifurcated into pull and push. The push segment is anticipated to grow at a rapid pace during the forecast period, owing to the increasing use of emerging technologies such as machine learning, artificial intelligence, and digital out of home (OOH) by many advertisers. Furthermore, push-type LBA is expected to develop significantly in the next years due to its new product launches or operating in a specialized market.
However, the pull segment is estimated to register a key market share in the coming years due to the growing use of the native social applications on smartphones and search engines. Furthermore, the use of free opt-in services given by marketers through mobile applications that provide location based services is increasing significantly.
Public spaces segment is projected to expand at a considerable CAGR
On the basis of applications, the market is segmented into airports, public spaces, retail outlets, and others. The Public spaces segment is projected to expand at a considerable CAGR during the forecast period due to the rising use of LBS by the brands, enterprises, and institutions located in public spaces.
Furthermore, brands and businesses with physical locations can geo-fence places and capture audiences visiting the location with the help of LBS providers and analytics companies. Various businesses and institutions, such as healthcare institutions, mom and pop shops, auto dealers, financial institutions, restaurants and motels, and educational institutions are successfully attracting and retaining audiences using geo-targeted advertising.
In addition, several public organizations, such as healthcare and banking are aggressively enhancing their mobile applications with an incorporated geolocation facility in order to provide more personalized services. Thus, all these factor are propelling the segment growth.
However, the retail industry is estimated to account for a major market share during the forecast period, owing to the growing customer engagement with brands on various social media platforms for marketing campaigns. Furthermore, fast-moving consumer goods marketers are now able to target consumers efficiently due to the active users’ involvement with brands on personal computers, smartphones, and tablets. In addition, big firms are focusing on in-store promotions with the help of location-based marketing, while smaller stores are attempting to understand consumer behavior.
Multimedia segment is estimated to gain a large revenue share
Based on contents, the global location based advertising market is divided into multimedia and text. The multimedia segment is estimated to gain a large revenue share during the forecast period, owing to the increasing use of social media platforms by people across ages. Furthermore, marketers are progressively using social media platform targeting to attract consumers based on interests, demographics, location, and other factors.
In addition, social native platforms and search engines are assisting advertisers in creating relevant, personalized, and targeted ads for their audiences with the help of geolocation data. According to industry data, three out of every four people who use their phone to look for products or services by visiting the site on the same day, and around a quarter of those searches result in a confirmed purchase.
Moreover, local companies are expected to benefit from multimedia location based advertising tools such as online search engines and social media platforms. According to the industry report, roughly 2.89 billion individuals used social media in 2019, and it is estimated to reach 3.39 billion by 2023. Additionally, on social media platforms such as Facebook, Instagram, YouTube, Snapchat, and Twitter, there is an abundance of advertising and marketing. Furthermore, social media giants such as Facebook Inc. and Google LLP are moving towards free LBA due to the change in the business model from monthly subscriptions to bundling of services. Thus, aforementioned factors are fueling the segment growth in the coming years.
North America is projected to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to constitute a key market share during the forecast period, owing to the growing implementation of location based services and advertising solutions. Furthermore, in 2018, Google LLP and Facebook Inc. together accounted for about 55.9% of all digital ad income in the United States.
In addition, approximately 83.9% of the overall U.S. population consumed the internet in 2019, with about 60% using social media. Additionally, increasing rate of digitization across businesses, growing social media users, and rising LBS providers are estimated to boost the market growth in the region.
Segments
The global location based advertising market has been segmented on the basis of
Types
Applications
- Airports
- Public Spaces
- Retail Outlets
- Others
Contents
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- TELENITY
- AdMoove
- Proximus Mobility, LLC.
- Emodo (Placecast)
- Near Pte Ltd.
- Facebook Inc.
- IBM Corp.
- Foursquare
- GroundTruth
- Google
Competitive Landscape
Some of the major players competing in the global location based advertising market are TELENITY; AdMoove; Proximus Mobility, LLC.; Emodo (Placecast); Near Pte Ltd.; Facebook Inc.; IBM Corp.; Foursquare; GroundTruth; and Google.
These major players are engaging in various marketing strategies such as cooperation between navigation platform providers and network operators, provision of a wide range of location-based services, expansion capacities, mergers & acquisitions, partnerships, and collaboration in order to sustain their position in the industry.
For example, GroundTruth and Yext, Inc., an online brand management organization, announced a cooperation and integration in May 2020 to produce personalized location based advertising promotions for advertisers who use the Yext platform. As a result of the integration, customers are now able to manage their listings in the Yext platform while using GroundTruth's proprietary blueprint mapping technology to identify and target customers with customized ads and offerings.
For instance, Foursquare and Factual Inc., a location data business came to an agreement in April 2020 to offer location based services all around the world. Furthermore, the partnership will give their users a united product portfolio, including offline attribution, developer tools, and Point of Interest (POI) data, which will assist businesses in using data and insights to improve their business and marketing decisions.
For example, Adomni, an open online OOH advertising platform, partnered with PlaceIQ, a prominent technology and data supplier in March 2019 to deliver location based consumer insights to the marketers.
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