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Last updated on April 20, 2014 at 1:20 EDT

Mobile Location-Based Advertising Will Be Worth 6.5 Billion In 2017

April 18, 2013

DUBLIN, April 18, 2013 /PRNewswire/ –

Research and Markets has announced the addition of Berg Insight AB’s new report
“Location-Based Advertising and Marketing – 2nd Edition”
[http://www.researchandmarkets.com/research/nmvdph/locationbased ] to their offering.

(Logo:
http://photos.prnewswire.com/prnh/20130307/600769 )

According to a new research report from the analyst firm Berg Insight, the total value
of the global real-time mobile location-based advertising and marketing (LBA) market will
grow from 526 million in 2012 at a compound annual growth rate (CAGR) of 65 percent to 6.5
billion in 2017. This will then correspond to 32.8 percent of all mobile advertising and
marketing. This means that location-based advertising and marketing will represent around
5 percent of digital advertising, or more than 1 percent of the total global ad spend for
all media. SMS, mobile search and coupons are today important high-volume LBA formats. The
ability to precisely target prospective customers using real-time location is currently
one of the most promising additions to the advertising toolbox. Key drivers for LBA
include the growing adoption of both outdoor and indoor location technologies, as well as
the increasing consumer acceptance of location-based services in general, said Rickard
Andersson, Telecom Analyst, Berg Insight.

Location targeting in combination with other contextual and behavioural segmentation
greatly enhances the relevance of mobile advertising. Major brands are so far the main
spenders, but LBA has also opened the mobile channel for small local merchants. Local
businesses can extend their marketing initiatives with mobile components such as
location-sensitive coupons using online self-services, while big box retailers leverage
enterprise LBA solutions for conquesting and to combat showrooming, said Mr. Andersson.
The LBA value chain is still forming and there are a large number of players involved in
the ecosystem. Since the value chain is fragmented and the industry has not yet reached
maturity, many different roles are involved. Companies range from LBA specialists such as
Verve, Placecast and xAd, to LBS players including Telmap, Telenav and Waze, and operators
such as AT&T, SFR and the new UK joint venture Weve. There is furthermore an abundance of
location-aware applications and media which serve geo-targeted ads, with examples such as
Foursquare, Shopkick and SCVNGR. Other stakeholders include coupons and deals providers
including Vouchercloud, Yowza!! and COUPIES, search solutions such as Yell and Yelp, and
proximity marketing providers like Proxama, NeoMedia and Scanbuy. A number of traditional
mobile advertising players are also active in the LBA space, for example Millennial Media,
Madvertise and Nexage, as well as major digital and telecom players such as Google, Apple
and Facebook.

For more information visit Research and Markets
[http://www.researchandmarkets.com/research/nmvdph/locationbased ]

Source: Berg Insight AB

        Research and Markets
        Laura Wood, Senior Manager.
        press@researchandmarkets.com
        U.S. Fax: +1-646-607-1907
        Fax (outside U.S.): +353-1-481-1716
        Sector: Advertising and Marketing
         [http://www.researchandmarkets.com/categories.asp?cat_id=25&campaign_id=nmvdph ]


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SOURCE Research and Markets


Source: PR Newswire