Location Based Advertising Market Analysis, COVID-19 Impact,Outlook, Opportunities, Size, Share Forecast and Supply Demand 2021-2027|Trusted Business Insights

Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Location Based Advertising market.

Trusted Business Insights presents an updated and Latest Study on Location Based Advertising Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Location Based Advertising market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.

Get Sample Copy of this Report @ Location Based Advertising Market 2020 and Forecast 2021-2027 Includes Business Impact Analysis of COVID-19

Report Overview: Location Based Advertising Market

The global location based advertising market was valued at USD 62.24 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 17.3% from 2021 to 2027. Rapidly increasing digitalization across industry verticals, growing penetration of internet & GPS enabled mobile devices, and increasing utilization of consumer data by marketers are the primary factors fostering growth in demand for Location Based Advertising (LBA). Moreover, the increasing use of social media by consumers and the shift of marketers from traditional banner advertising to digital platforms has propelled the use of LBA across industries. In addition, regulatory measures to ensure consumer safety, the proliferation of new data sources, and evolving methodology for marketing purposes is likely to promote market growth over the forecast period 2021-2027.

With more than two-thirds of the global population now connected by GPS enabled mobile devices, location data has become one of the important data sources. Currently, as per the GSMA, there are around 5.16 billion mobile subscribers globally and around 4.57 billion internet users globally. Moreover, changing consumer behavior to use mobile applications for engaging socially and shopping has posed a compelling opportunity for advertisers to place marketing and advertising content on various social media platforms. Besides, the increasing development of mobile applications by brands and advertisers enabled with LBS is likely to increase the number of customers and boost market growth.

In the LBA industry, the suppliers of various platforms including advertising and location services are offering freemium apps that are used to attract advertisers to use their core services. However, service providers charge for additional content and features provided. Moreover, there is a growing trend among suppliers of location based platforms to partner with analytics solution providers to enhance their solutions. For instance, in March 2019, Adomni, an open online out-of-home (OOH) advertising platform, has collaborated with PlaceIQ, a leading technology and data provider, to provide location-based consumer insights and analytics to the advertisers.

GPS penetration has been increasing in all the mobile phones and, is almost 100 percent in smartphones. Since 1998, commercial GPS receiver sensitivity has increased 1000 times till date owing to improved satellite technology. Moreover, other developments in the communication and navigation technology such as Assisted GPS (AGPS), increasing use of CellID positioning in the wake of increasing IoT devices, and 5G penetration is anticipated to aid the growth of location based services, and LBA market. These developments will present ample opportunities for marketers, researchers, regulatory groups, and network providers to tap in the location based advertising market.
The privacy concerns are one of the reasons why users are hesitant to share their location data with advertisers. The concern of sharing the data with other services and receiving of irrelevant ad notifications needs to be tackled by the marketers effectively. However, in the U.S., there are privacy compliance organizations such as the Digital

Advertising Alliance, TrustArc, and Network Advertising Initiative instrumental in regulating advertising practices. Moreover, California Consumer Privacy Act in the U.S. can act as a precedence for other states to follow the suit and potential federal legislation in near future fostering the confidence of LBA industry. The COVID-19 outbreak has had a big impact on several industries including digital advertising and marketing industry. Moreover, owing to travel bans across the world, LBA market serving the airports and other commuting places is likely to be impacted for a brief period of time. However, with the coronavirus pandemic, business owners are now evaluating their advertising efforts and assessing new ways and customers to run their online ads. With worldwide relaxations to open the economy, the advertising campaigns will positively deliver value to people and businesses over the forecast period.

Content Insights: Location Based Advertising Market

Based on content, the multimedia segment lead the market with revenue share of around 65% in 2019. Social media targeting has become of a prominent tool among marketers to attract audiences based on demographics, interest, and location among others. Search engine and social native platforms with the aid of geolocation data is helping marketers to create relevant, personalized, and targeted ads for its audience. The industry insights suggest that three out of four people who search for products or services nearby using their phone generally visit the location the same day and about 25% of those searches lead to confirm purchase.

Multimedia location based advertising tools such as online search engines and social media platforms is anticipated to improve the footfall of local businesses. The industry survey states that in 2019 there were around 2.95 billion people using social media and the number is likely to increase to 3.43 billion by 2023. The proliferation of advertisement and marketing is apparent on various social media sites such as Facebook, YouTube, Instagram, Snapchat, and Twitter. Moreover, the movement towards free LBS by social media giant such as Google LLP and Facebook Inc. owing to shift in the business model from monthly subscriptions to the bundling of the services is likely to boost the segment growth in LBA market.

Application Insights: Location Based Advertising Market

Public spaces among the application segment accounted for the major share of around 40% in 2019 owing to the increasing use of LBS by the brands, enterprises, and institutions located in public spaces. Brands and business with physical locations in collaboration with LBS providers and analytics companies are able to geofence locations and capture its audiences visiting the locations. Various enterprises and institutions including pop and moms stores, financial institutions, auto dealers, restaurants and hotels, educational institutions, and healthcare institutions are successfully using geotargeted campaigns to attract and retain audiences. Moreover, among various public institutions, healthcare units and banking institutions are actively improving their mobile applications with an inbuilt geolocation facility to offer more personalized services and foster market growth.

The retail industry has also been increasingly developing channels to reach consumers effectively. Among print, radio, TV, and other forms of media, location based marketing has become an innovative tool in the wake of the increasing use of social media platforms. The increasing consumer engagement with brands on different social media channels opens new avenues for marketing campaigns. Owing to the active engagement of users with brands on mobile, personal computers, and tablets fast-moving and consumer goods marketers are able to target consumers effectively. Moreover, with the help of location-based marketing, big brands are focusing on in-store promotions while smaller stores are trying to understand consumer behavior.

Type Insights: Location Based Advertising Market

The push type of location based advertising accounted for the major share of more than 60% in 2019 owing to its commonality among advertisers. Opt-out type of services is the most approaches deployed by advertisers in push advertising to retain consumers. Moreover, push programmatic advertising has been a growing component of advertising technology owing to upcoming technologies such as artificial intelligence, machine learning, digital OOH, and voice search attracting most advertisers. Besides, on account of launching new products or while operating in a niche market; push-type of LBA is likely to witness significant growth in the coming years.

Location based advertising pull approach is anticipated to grow at a faster pace owing to the increasing use of search engines and the use of native social applications on smartphones. The increasing use of free opt-in services offered by marketers through mobile applications is rapidly growing that offers location based services. However certain legal regulations put in place by governments is likely to pose a challenge for the growth of the advertising strategy. Moreover, the use of the growing use of digital analytics has enabled marketers to develop a comprehensive understanding of their audience to gauge the best possible push and pull strategy to shift customers from awareness to purchase the particular product.

Regional Insights: Location Based Advertising Market

North America accounted for the major revenue share of over 33% in 2019 owing to the early adoption of location based services and advertising solutions. Presence of prominent vendors in the region such as Google LLP and Facebook Inc. are the prime drivers for the growth of the regional LBA market growth. Moreover, Google LLP and Facebook Inc. combined accounted for around 56.8% of the U.S. digital ad revenues in 2018. In addition, as of 2019, around 84% of the total U.S. population accessed the internet and around 60% are social media users. Thus, a high rate of digitization among industries, growth of social media users, and increasing LBS providers is anticipated to foster the LBA market growth in the region.

The Asia Pacific region is likely to witness the fastest growth over the forecast period. Growth of smartphone users, increasing spend on goods and services via an e-commerce platform, and low-cost model of advertising are some of the prime factors driving the market growth. As per the 2020 Digital Trends in Asia Pacific, more than 57% of organizations in the region surveyed are anticipated to increase their digital advertising investment for 2020. Moreover, the entry of major LBS providers such as Near Pte Ltd, location based mobile advertising platform in Singapore has been instrumental in serving regions such as Malaysia and Indonesia.

Key Companies & Market Share Insights: Location Based Advertising Market

Owing to the existence of several stakeholders in the LBA supply chain, key strategies include collaborations among navigation platform providers and network operators, provision of a wide range of location based services, expansion capabilities, mergers & acquisitions, and partnerships & agreements, among others. Companies such as Aisle411, Locately, ROXIMITY, Vistar Media, Mapbox, MomentFeed, and Skyhook among others are the budding startups in the field of location based services that is likely to pose promising competition to the existing competitors.

In May 2020, GroundTruth, announced a partnership and integration with Yext, Inc., an online brand Management Company, to develop customized location-based advertising campaigns for advertisers who employ the Yext platform. With the integration, customers are likely to control their listings in the Yext platform while utilizing GroundTruths trademarked Blueprint mapping technology to recognize and aim customers with custom-made offerings and ads. Similarly, in April 2020, Foursquare and Factual Inc., a location data company, partnered together to offer location based services worldwide. Moreover, the collaboration will together provide their users a combined product portfolio, offering offline attribution, developer tools, and Point of Interest (POI) data that will help companies to harness the data and insights that enhance their business and marketing decisions. Some of the prominent players in the location based advertising market include:

Key companies Profiled: Location Based Advertising Market Report

  • AdMoove
  • Emodo (Placecast)
  • Facebook Inc.
  • Foursquare
  • Google Inc.
  • GroundTruth
  • IBM Corporation
  • Near Pte Ltd.
  • Proximus
  • Mobility, LLC. Telenity

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global location based advertising market report on the basis of type, content, application, and region:

Type Outlook (Revenue, USD Million, 2016 – 2027)

  • Push
  • Pull

Content Outlook (Revenue, USD Million, 2016 – 2027)

  • Text
  • Multimedia

Application Outlook (Revenue, USD Million, 2016 – 2027)

  • Retail Outlets
  • Public Spaces
  • Airports
  • Others

 

Looking for more? Check out our repository for all available reports on Location Based Advertising in related sectors.

Quick Read Table of Contents of this Report @ Location Based Advertising Market 2020 and Forecast 2021-2027 Includes Business Impact Analysis of COVID-19

Contacts

Trusted Business Insights
Shelly Arnold
Media & Marketing Executive
Email Me For Any Clarifications
Connect on LinkedIn
Click to follow Trusted Business Insights LinkedIn for Market Data and Updates.
US: +1 646 568 9797
UK: +44 330 808 0580