Berg Insight has forecast that the real-time mobile location-based advertising and marketing market will grow from a worldwide value of €526 million (£450 million) last year to €6.5 billion (£5.6 billion) in 2017, which is a compound annual growth rate of 65%.
This will be 32.8% of all mobile advertising and marketing, giving location-based advertising and marketing (LBA) around 5% of the digital advertising market.
The company notes that SMS, mobile search and coupons are all currently important high-volume LBA formats.
Rickard Andersson, Telecom Analyst at Berg Insight, said “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. Major brands are so far the main spenders, but LBA has also opened the mobile channel for small local merchants. Local businesses can extend their marketing initiatives with mobile components such as location-sensitive coupons using online self-services, while big box retailers leverage enterprise LBA solutions for conquesting and to combat showrooming.”
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