Location Targeted Mobile Advertising Market

Global Location Targeted Mobile Advertising Market Size (2023 - 2028)

The global location targeted mobile advertising market was calculated to be USD 62.35 billion in 2022 and is predicted to garner a compound annual growth rate (CAGR) of 17.4% over the envisioned period from 2023 - 2028.

The advancements in mobile communication and geolocation technologies are expected to increase the steady dynamics of the global location targeted mobile advertising market. In addition, the location-based personalization of any ad is believed to create a positive customer experience and increase the effectiveness of the ad campaign. The increased adoption of 5G technology in the coming years is also expected to further drive the market due to the faster and more accurate location tracking that 5G technology offers.

Impact of COVID-19 on Location Targeted Mobile Advertising Market

The coronavirus outbreak has had a major impact on various industries, including the digital advertising and marketing industry. Additionally, due to worldwide travel bans, the location targeted mobile advertising market serving airports and other transit locations is likely to be affected for a short time. However, with the COVID-19 pandemic, business owners are now evaluating their advertising efforts and evaluating new ways and customers to deliver their ads online. With global eases to open up the economy, advertising campaigns will generate positive value for individuals and businesses during the prediction period.

Recent Developments:

• In 2019, InMarket announced its intention to acquire Thinknear in order to increase its market share in location-based mobile advertising. The combination of Thinknear and inMarket activities will create a location-based marketing technology platform with customers from various industries.
• Major players such as Google and Facebook contributed about 63% of digital ad revenue in the United States in 2017. However, several marketers are beginning to recognize the need for other options in the market.

Market Growth and Trends:

Retail segment will experience significant growth

• The increase in the use of smartphones by Internet users around the world encourages retailers to embrace location targeted mobile advertising, as they can increase the number of visits if they aim for customers close to the store and with personalized content. Several developing countries are seeing an 82% improvement in smartphone penetration compared to 80% in developed countries and smartphone shipments are expected to reach 2.2 billion units globally this year 2019.
• A study by Swirl found that 73% of customers who received a tag activated message on their mobile devices said their desire to make a purchase increased when they visited the store, while 61% said the notification made them go to the store more often.

Market Drivers and Restraints:

The rapid increase in digitalization in industry verticals, the increasing penetration of GPS and internet enabled mobile devices, and the increased use of consumer data by marketers are the main drivers of growth for the global location targeted mobile advertising market. In addition, the increasing use of social media by consumers and the shift of marketers from traditional banner ads to digital platforms has resulted in the use of this advertising across industries. In addition, regulatory measures to ensure consumer safety, proliferation of new data sources, and evolution of methodology for marketing purposes are likely to promote the growth of the location targeted mobile advertising market during the conjecture period.

GLOBAL LOCATION TARGETED MOBILE ADVERTISING MARKET REPORT COVERAGE:

Market segmentation:

The global location targeted mobile advertising market is segmented based on type, content, application, and region

Global Location Targeted Mobile Advertising Market – By Type:

• Push
• Shoot

Global Location Targeted Mobile Advertising Market – By Content:

• Text
• Multimedia

Global Location Targeted Mobile Advertising Market – By Application:

• Points of Sale
• Public Spaces
• Airports
• Others

Regional Analysis:

Privacy concerns are one reason users are reluctant to share their location data with advertisers. The concern of sharing data with other services and receiving irrelevant advertising notifications must be effectively addressed by marketers. However, in the United States, there are privacy enforcement organizations, such as the Digital Advertising Alliance, TrustArc, and the Network Advertising Initiative, that are critical in regulating advertising practices. Additionally, the California Consumer Privacy Act in the United States may serve as a precedent for other states to follow suit and potential federal legislation in the near future, building confidence in the AML industry.

The Asia-Pacific region is supposed to register rapid expansion during the projection period. The growth of smartphone users, the increase in spending on goods and services through the e-commerce platform and the low-cost advertising model are some of the main growth factors in the location targeted mobile advertising market. North America is expected to capture a significant share of the location targeted mobile advertising market thanks to the increasing use of smartphones and the growth of IoT technology in the region. The region is home to some of the major market players, such as Google and Facebook.

Barneys New York, a department store chain in the United States, uses a location-based marketing model using tags where its dedicated application provides users with all available items that are in stock when the user is nearby a store and even get recommendations for nearby restaurants and attractions. In 2017, US companies spent US $ 17.1 billion on location-based mobile advertising and are expected to see a further increase in the future due to large-scale deployments of 5G and IoT technologies in the country, which would provide even more seamless communication and location tracking between connected devices.

Key market players:

Top companies featured in the global location targeted mobile advertising market report include Ericsson AB (Placecast), Google, Inc., IBM Corporation, Near Pte. Ltd., Telenity, Inc., Scanbuy, Inc., Foursquare Labs, Inc., Shopkick, Inc. (Trax), GroundTruth, Inc. and AdMoove SAS.