01 Jul The Techs Driving the Location-Based Ad & Marketing Explosion
A recent eWeek article shares findings from a research report by Berg Insight. The analyst firm forecasts that the total value of the global real-time mobile location-based advertising and marketing (LBA) market will grow from $1.66 billion in 2013 to $14.8 billion in 2018. Wow!
The expected growth will correspond to 38.6 percent of all mobile advertising and marketing, with location-based advertising and marketing representing around 7 percent of digital advertising.
Retailigence’s recent move to extend use of online-to-offline marketing solutions to digital advertising tech companies contributes greatly to this skyrocketing market. It enables LBA on a massive scale.
Ad technology partners, including rich media, mobile, and display providers, can now easily create dynamic location-based product messages along a shopper’s path to purchase. We’re powering local ad campaigns for 50+ leading mobile and digital marketing providers, including AdColony, Medialets, PointRoll, Tremor Video, and XTOPOLY.
A March Berg report revealed that “mapping and navigation” is the second largest segment in terms of revenues and the third largest in terms of number of active users. Local search is now the second largest LBS category in terms of active users and the third largest in terms of revenues. And, “Advertising is the main source of revenues for most consumer-oriented LBS,” said André Malm, Senior Analyst, Berg Insight.
The technologies are available and consumers are ready, making driving in-store sales a compelling use case for retail – and one we will see explode in the next few years.
A VP with Retailigence partner Tremor Video explained it well. “We can now integrate key retailer and product information into interactive ads and provide consumers with the data we know they’re looking for. This capability, in addition to our enhanced creative, shoppable video and ‘tap to map’ features, gives retailers, CPG brands, QSRs and others the tools they need to stay at the forefront of consumers’ consideration.”
Complementary innovations in the real-time mobile LBA space are also fueling massive growth, acknowledges the eWeek reporter.
- Beacons – Based on Bluetooth low energy (BLE); in 2014 retailers will launch marketing campaigns and tap into analyzing in-store customer behavior.
- Online payment companies – A new set of players competing alongside established LBA specialists like Verve, Placecast and xAd
- Location-based services players – Including Intersec, Telenav and Waze, and network operators such as AT&T
With 74% of American smartphone users ages 18 and older using their phone to get directions (Pew Research), it’s no surprise that the location-based advertising market is primed to explode.
Read more in Ad Exchanger, which exlains how PointRoll and other ad tech vendors are connecting brand advertisers with local brick-and-mortar pricing and product availability down to the SKU.