Global Location Based Advertising Market By Type (Pull and Push), By Content (Multimedia and Text), By Application (Retail Outlets, Airports and Public Spaces), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Location-Based Advertising (LBA) Market Overview:

The global location-based advertising market was accounted for in 2021 at USD 86,963.35 million and is projected to grow at a CAGR of 18.1% between 2023-2032.

Location-Based Advertising (LBA) is seeing rapid growth due to increasing digitalization in all industry verticals, increasing penetration of internet- and GPS-enabled smartphones, and increased marketing use of consumer data. LBA has seen a rise in popularity across all industries due to the increased use of social media and the shift by marketers away from traditional banner advertising toward digital platforms.

Market growth is likely to be supported by regulatory measures to protect consumers, new data sources, and an evolving marketing strategy.

Global Location-Based Advertising Market Scope:

Type Analysis

Because it is a common method of location-based advertising, the push type accounted for more than 62% of 2021’s total. To retain customers, push advertising is dominated by opt-out services.

Push programmatic advertising is a rapidly growing part of advertising technology due to the upcoming technologies like artificial intelligence, machine learning, voice search, and digital OOH. The push-type LBA will also see significant growth due to the possibility of launching new products and operating in a niche marketplace.

Due to the increasing usage of search engines and native social apps on smartphones, location-based advertising pull approaches are expected to grow faster. Mobile applications are rapidly expanding the number of opt-in services that marketers offer free. Certain legal regulations that have been set up by governments may limit the expansion of an advertising strategy. Marketers can use digital analytics to gain a deep understanding of their customers to determine the best push and pull strategy to get them to buy the product.

Content analysis

The market was dominated by the multimedia segment with a share of about 66% in 2021. Marketers have increasingly used social media targeting to reach their audiences. This is because it allows them to target people based on location, interests, and demographics.

Marketers can create targeted, relevant ads using social native platforms and search engine data. According to industry insight, three out of four people who use their phones to search for services or products nearby visit the site the next day. About 27% of those searches result in confirmed purchases.

Multimedia location-based advertising tools, such as online search engines or social media platforms, are expected to increase footfall for local businesses. According to an industry survey, there were 2,950 million users of social media in 2021.

This number is expected to rise to 3,430 million by 2023. Social media platforms such as Facebook, Instagram, Snapchat, and Twitter have seen a rise in marketing and advertisement. The shift from monthly subscriptions to bundling services to free LBS is expected to increase segment growth in the LBA market.

Application Analysis

The major portion of the app segment was 43% for public spaces in 2021, due to the increased use of LBS by brands, institutions, and enterprises located in public spaces. Businesses and brands with physical locations can geofence their locations to capture their customers.

Geo-targeted campaigns are being used by many businesses and institutions such as pop and mom’s shops, financial institutions and auto dealers, restaurants, hotels, educational institutions, and healthcare institutions to retain and attract their audiences. Healthcare units and banks are also actively improving their mobile apps with an integrated geolocation facility. This allows them to provide more customized services and promote market growth.

Retail has been developing new channels to effectively reach customers. In the age of social media platforms, location-based marketing is now a powerful tool that can be used in print, radio, TV, and other media. New avenues of marketing are possible due to the increasing engagement of consumers with brands via different social media channels.

Consumer goods marketers can target customers effectively due to active engagement on social media channels such as mobile, personal computers, and tablets. Location-based marketing allows big brands to focus on smaller shops and may focus on in-store marketing while attempting to comprehend client behavior.

For flooring applications that require the use of Location-Based Advertising, epoxy and polyurethane are used. For coloring rubber sheets, tire sidewalls, and equipment used in surgery in the medical sector, Location Based Advertising is used.

Кеу Маrkеt Ѕеgmеntѕ

By Type

• Pull
• Push

By Content

• Multimedia
• Text

By Application

• Retail Outlets
• Public Spaces
• Airports
• Other Applications

Market Dynamics:

More than two-thirds of the worldwide population is now connected via GPS-enabled mobile phones. Location data is one of the most important data sources. According to the GSMA, currently, there are approximately 5,160 million global mobile subscribers and 4,570 million internet users.

Advertisers have a compelling opportunity to place advertising and marketing content on social media platforms due to the shift in consumer behavior towards using mobile apps for shopping and engaging socially. LBS will enable brands to develop mobile apps that are easier for customers. This will increase the market growth.

The LBA industry offers freemium apps to lure advertisers to use their core platforms. Service providers will charge extra for any additional features or content. To enhance their services, it is becoming more common for location-based platform suppliers to work with analytics solution providers. Adonai, an online OOH advertising platform, partnered with PlaceIQ in 2019 to offer location-based consumer insights to advertisers.

The percentage of GPS penetration in mobile phones has increased and is now almost 100% in smartphones. The improved satellite technology has enabled commercial GPS receivers to be more sensitive than ever since 1998.

Other developments in communication technology, such as Assisted GPS, Cell ID positioning, and increasing IoT device penetration, are expected to help the growth of location-based services and the LBA market. Marketers, regulators, network providers, and marketers will have ample opportunities to tap into the market for location-based advertising.

Privacy concerns are one reason why users hesitate to share their location data. Marketers must address the concerns about sharing data with other services or receiving irrelevant ad notifications. The U.S. has privacy compliance organizations like the Digital Advertising Alliance and TrustArc that are instrumental in regulating advertising practices.

The California Consumer Privacy Act, which is based in the U.S., can be used as a precedent for other states to follow suit and potentially federal legislation in the near future. This will foster the industry’s confidence. Many industries have been affected by the COVID-19 epidemic, including digital advertising and marketing. Due to the travel bans around the globe, the LBA market that serves airports and other commuter places will likely be affected for a short time.

Business owners are now reviewing their advertising strategies and looking for new customers and ways to place their ads online, in light of the coronavirus pandemic. The advertising campaigns will bring positive value to both individuals and businesses, thanks to worldwide openings.

Regional Analysis

North America was responsible for the largest revenue share, with 34.1% of the total in 2021. This is due to the adoption of location-based services and advertising solutions early. Google LLP ad Facebook Inc., two of the most prominent regional vendors, are key drivers of the LBA market’s growth.

In 2021, 58.9% of U.S. digital ad revenue was generated by Google LLP and Facebook Inc. Additionally, around 86% of all Americans access the internet in 2018, and approximately 61% of them are social media users. The region’s LBA market is expected to grow due to high digitization rates in various industries and the growth of LBS providers.

The Asia Pacific will likely experience the fastest growth during the forecast period. Market growth is being driven by the growth in smartphone users, increased spending on goods and/or services via e-commerce platforms, and a low-cost advertising model.

According to the 2020 Digital Trends in Asia Pacific report, 58% of the surveyed organizations plan on increasing their digital advertising investments for 2020. Near Pte Ltd, a location-based mobile advertising platform, has helped to serve regions like Indonesia and Malaysia.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Due to the existence of several players in the LBA supply chains, significant tactics include, among other things, partnerships & agreements, a wide range of location-based services, cooperation between navigation platform providers and network operators, and growth possibilities. Some of the potential start-ups in the field of location-based services are Aisle411, Located, and PROXIMITY.

In May 2020, GroundTruth announced a collaboration with online brand management company Yext, Inc. to develop specialized location-based advertising campaigns. Consumers may target customers with personalized advertisements and offers by managing their listings on the Yext platform using GroundTruth’s Blueprint mapping technology.

In order to offer location-based services globally, Foursquare and Factual Inc., a global provider of location data, teamed up in April 2020. A merged product portfolio that includes offline attribution, developer tools, and Point of Interest data will also be made available to consumers as a result of the agreement. Companies will be able to use data and insights in this way to improve business and market choices.

Маrkеt Кеу Рlауеrѕ:

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

For the Location Based Advertising (LBA) Market research study, the following years have been considered to estimate the market size: