The value of the market for real time mobile location-based advertising and marketing (LBA) will grow from €526 million ($689.7 million) in 2012 to €6.5 billion in 2017, Berg Insight predicts.
LBA’s growth will see it account for a third (32.8%) of all mobile advertising and marketing income in 2017, 5% of all digital advertising, and account for around 1% of total global advertising spend across all media, Berg’s research indicates.
“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,” Rickard Andersson, telecom analyst at the firm says.
Andersson notes major brands are the main spenders in today’s LBA market, but adds the sector has also “opened the mobile channel for small local merchants,” who can use it to “extend their marketing initiatives with mobile components, such as location-sensitive coupons.”