Location-based Search and Advertising Market in the US 2016-2020

Market outlook of the location-based search and advertising market in the US

Technavio’s market research analyst predicts the location-based search and advertising market in the US to grow at a CAGR of more than 38% during the forecast period. Location-based search and advertising is an emerging trend, and it is expected to grow remarkably during the forecast period because it offers cost-effective communication that helps SMEs achieve their business goals.

The rapid deployment of beacons is one major factor, which is anticipated to drive market growth during the forecast period. Beacon triggered marketing is an accurate model of proximity marketing, which works by utilizing Bluetooth signal from a beacon located with the store. Thus, the adoption rate of beacons is on the rise due to their easy deployment and inexpensive features. For instance, the typical beacon’s cost would range from $30 - $40 and the only other cost that incurs would be the time and resources required to create the content.

Segmentation by technology and analysis of the location-based search and advertising market in the US

• Push advertising
• Pull advertising

In terms of technology, the push advertising segment is leading the location-based search and advertising market in the US, as the majority of the companies in the US are making massive investments in this segment and hence, it is expected to witness further growth in the forecast period.

Application segmentation and analysis of the location-based search and advertising market in the US

• Messaging
• Display
• Search

Messaging through SMS is the easiest and cost-effective method of advertising to consumers due to the increasing penetration of smartphones and the decreasing price of data services. Therefore, the messaging application segment is expected to witness a significant growth compared to other application methods in the forecast period.

Competitive landscape and key vendors

The location-based search and advertising market in the US is highly fragmented with the presence of various stakeholders such as advertisers, platform providers, application developers, navigation providers, and mobile operators. Also, since location-based search and advertising is a substitute for electronic and print media advertising, many regional SMEs are shifting their investments to this market.

The top vendors in the market are -

• Foursquare
• xAD
• Groupon
• Scanbuy
• Shopkick

Other prominent vendors in the market include Yoose, Verve, Thumbvista, Ping Mobile, Qualcomm Izat, Thinknear, Polaris Wireless, Waze (Google), bfonics, Gimbal, and Social Retail.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the location-based search and advertising market in the US?
• What are the key market trends impacting the growth of the location-based search and advertising market in the US?
• What are the challenges to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities and threats faced by the vendors in the location-based search and advertising market in the US?
• What are the key outcomes of the five forces analysis of the location-based search and advertising market in the US?

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