Outlook of the global location-based search and advertising market
Technavio’s market research analyst project the global location-based search and advertising market (LBSA) to account for a CAGR of approximately 46% during the forecast period. Factors such as the rising usage of big data analytics to understand consumer insights, growing utilization of smartphones across regions, high adoption of location-based marketing by several industries, rapid adoption of GPS-enabled devices by enterprises and individual consumers, and the growing coverage of mobile broadband networks will help to augment the adoption of location-based search and advertising among small businesses.
An important factor that drives the prospects for growth of the location-based advertising market size is the reduced cost of marketing and enhanced consumer outreach. Recently, it has been observed that enterprises such as retail, automotive, logistics, and food processing use location-based search and advertisement platforms to minimize their operational costs. The ability of location-based search and advertisement platforms to send targeted ads to consumers will result in its increased adoption during the predicted period.
Segmentation by type and analysis of the location-based search and advertising market
The global location-based search and advertising market is dominated by the push segment, which is envisaged to grow profoundly at a CAGR of approximately 38% during the forecast period. In recent times, it has been observed that a large number of companies are involved in pushing targeted advertisements to consumers. This mode of advertising will gain prominence in the next few years as the advertising content is automatically delivered or served to the end users based on a trigger.
Application-based segmentation of the location-based search and advertising market
In this market study, analysts have estimated the display segment to be the highest revenue generating segment during the predicted period. This market segment will gain traction due to the shift toward infographics and better customer engagement. The ability of this form of advertisement to identify a potential buyer and to push relevant notifications, such as an ad or a coupon, to the targeted end users will result in this segment’s strong growth during the forecast period.
Competitive landscape and key vendors
The competitive environment of this market is expected to intensify with an increase in R&D innovations and M&A activities over the next few years. The market is also likely to witness a growing trend of local acquisitions by the leading players. In developed countries such as the EU and the US, the increased penetration of smartphones has left the market overcrowded with many small and big players. Also, a large number of telecom operators are also entering the mobile location-based advertising business by acquiring small providers.
Top vendors in the market are -
- AdMoove (HiMedia)
- Foursquare
- Groupon
- Near
- xAD
Other prominent vendors in the market include Adfalcon (Noquoush), Aislelabs, Appello Systems, Badoo, bfonics, BLIP Systems A/S, Burpple, COUPIES, Facebook, Gimble, Hungry Go Where (SingTel), Intersec, Jatis Mobile, Komli Mobile, Millennial Media (Verizon), Madvertise media (Mobile Network Group), Nexage (Verizon), NeoMedia, Ping Mobile, Polaris Wireless, Proxama, Scanbuy, Shopkick (SK Planet), ShowNearby (Honeybay), Social Retail, Sprooki, Thinknear (TeleNav), Thumbvista, Verve Wireless, Vouchercloud (Vodafone), Waze (Google), Weve (O2), Wimdu, and Yoose.
Key questions answered in the report
- What will the location-based advertising market size and growth rate be in 2020?
- What are the key factors driving the global location-based search and advertising market?
- What are the key market trends impacting the growth of the global location-based search and advertising market?
- What are the challenges to the location-based advertising market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the global location-based search and advertising market?
- What are the trending factors influencing the location-based advertising market shares of the Americas, APAC, and EMEA?
- What are the key outcomes of the five forces analysis of the global location-based search and advertising market?