According to Berg Insight, the real-time mobile location-based advertising and marketing (LBA) space will grow from Euro 526 million in 2012 to Euro 6.5 billion in 2017.Growing adoption of both outdoor and indoor location technologies, as well as increasing consumer acceptance of location-based services are the key growth drivers of this market.
Further, the real-time market will correspond to 32.8 per cent of all mobile advertising and marketing.
Berg Insight expects location-based advertising and marketing to represent about 5 per cent of digital advertising, or more than 1 per cent of the total global advertising spends on all media. Currently, SMS, mobile search and coupons are the important high-volume LBA formats.
The research firm points out that LBA has opened the mobile advertising channel for small local merchants as well. Local businesses can extend their marketing initiatives with mobile components like location-sensitive coupons using online self-services. The LBA value chain is currently fragmented and still evolving and a large number of players are a part of the LBA ecosystem.
According to Berg Insight, the leading players in the LBA market are Verve, Placecast and xAd, Telmap, Telenav and Waze, AT&T, SFR and Weve. The market is also dominated by location-based applications and media which serve geo-targeted advertising such as Foursquare, Shopkick and SCVNGR. The industry also comprises of coupons and deals providers like Vouchercloud, Yowza!! and Coupies, and proximity marketing providers like Proxama, NeoMedia and Scanbuy.
Further, a number of traditional mobile advertising players like Millennial Media, Madvertise and Nexage and telecom players like Google, Apple and Facebook are also active in the LBA space.
