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Wednesday, May 9, 2012

Over a quarter of all mobile ad spend will be location-related in 2016

A new research report from Berg Insight has calculated that the total value of real-time mobile location-based advertising and marketing (LBA) will grow from €192 million in 2011 to €4.9 billion (£3.9 billion) in 2016. That’s a compound annual growth rate of 91%, with the 2016 figure corresponding to 28.3% of all mobile advertising and marketing.

This means location-based advertising and marketing will represent more than 4% of all digital advertising; around 1% of the total global ad spend across all media.

Rickard Andersson, Telecom Analyst at Berg Insight, said “The growing attach rates of location technologies in handsets and the increasing consumer acceptance of location-based services in general are the main game changers. Major brands are progressively embracing location-based advertising across the range of mobile formats, and LBA also opens up the mobile channel for new advertisers such as local merchants.”

The company notes that major digital and telecom players such as Google, Apple and Nokia are currently competing to gain market share alongside specialised location-based ad providers, mobile operators, location-based services, location-aware apps and media, mobile coupon providers, mobile search companies and proximity marketing providers.

[Report brochure (pdf)]

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