Location Based Business Advertising is on the rise thanks to growing adoption of digital technologies by today’s consumers, a new study reveals.
The global study which also focused on African consumers forecasts that the world’s Location Based Advertising Market size is expected to reach $163.5 billion by 2026, rising at a market growth of 18.5% CAGR during the forecast period.
Thanks to handshake of technology and the advertising industries, location-based advertising now includes online and offline strategies created to help businesses plan and execute marketing activities based on the geographical location of customers.
Rapidly growing digitization is now driving growth in the location based advertising market among consumers, according to authors of the “Global Location Based Advertising Market By Type (Push and Pull), By Application (Public Spaces, Retail Outlets and Airports & Others), By Content Type (Multimedia and Text), By Region, Industry Analysis and Forecast, 2020 – 2026”.
The usage of consumer data to display relevant brand messages to a highly targeted audience is at the heart of location-based marketing. Localized marketing, also known as geo-marketing, is not a new idea, according to the study.
According to its authors, “businesses have always recognized the importance of marketing to people on the basis of their location. Owing to this, a number of brick-and-mortar businesses also send direct mailers, and that’s why during the tax season, a lot of people can be seen wearing Statue of Liberty costumes on the roadside.”
For this to work, consumers have to opt-in to allow this kind of data to be available, and location-based marketing is therefore driven through the consumer’s granted permissions. Relevance is also at the root of the approach.
“If a consumer dines in a restaurant, they might see an ad on their phone for an ice-cream shop only a block away. When a shopper is always in the Little League area on springtime Saturdays, and the data reveals that he hits the grocery store on Thursdays, so the location data has helped to come onto a conclusion that says Tuesday or Wednesday can be the perfect time to deliver a game-friendly snacks package”, according to authors of this study.
The study discovers that rapidly growing digitization across business verticals, increasing adoption of internet & GPS enabled mobile devices, and accelerated usage of customer data by advertisers are the key things that drive demand growth for Location Based Advertising.
Furthermore, the growing usage of social media by users and the move of advertisers from conventional banner ads to new channels have driven the use of LBA across industries. In addition, regulatory initiatives to ensure consumer health, the proliferation of new data sources and the changing marketing approach are expected to encourage demand development over the forecast period.
Based on Type, the market is segmented into Push and Pull. Based on Application, the market is segmented into Public Spaces, Retail Outlets and Airports & Others. Based on Content Type, the market is segmented into Multimedia and Text. Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.