Location-Based Advertising To Reach $133 Billion by 2026: Report
The global market for Location Based Advertising (LBA) estimated at $63.9 billion in the year 2020, is projected to reach a revised size of $133 billion by 2026, growing at a CAGR of 12.8 per cent over the analysis period, according to a ResearchAndMarkets report. Growth in the global market is propelled by rapid digitisation […]
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The global market for Location Based Advertising (LBA) estimated at $63.9 billion in the year 2020, is projected to reach a revised size of $133 billion by 2026, growing at a CAGR of 12.8 per cent over the analysis period, according to a ResearchAndMarkets report.
Growth in the global market is propelled by rapid digitisation across various industry verticals, increasing dependence of marketers on consumer data, along with the rising penetration of GPS-enabled mobile devices and the internet. Growing usage of mobile data and mobile search, increasing penetration of smartphone devices, and favourable consumer demographics also boost market prospects.
With mobile Internet growing at a much faster rate than computer-based Internet access, particularly in the developing countries and among the younger demographic, LBA is expected to grow at robust rate.
Technological advancements, especially in the mobile phone segment and the development of novel advertisement platforms in conjunction with the requirement to reach customers on the move is another factor driving the use of LBA.
In order to gain greater acceptance, LBA applications need to include the required technology to allow user freedom in search and at the same time determine the type of advertisement to reach the consumer. Also, emphasis must be placed on the advertisement context to gain the attention of user. The increased use of Wi-Fi technology also supports the growth of LBA, especially in indoor environments.
Retail outlets, one of the segments analysed in the report, is projected to grow at a 12.2 per cent CAGR to reach $62.9 Billion by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Public Places segment is readjusted to a revised 14.2 per cent CAGR for the next 7-year period. This segment currently accounts for a 28.3 per cent share of the global LBA market.
The public places segment’s growth is due to the growing adoption of LBS among institutions, brands, and enterprises in public places. Businesses and brands with physical stores can join hands with analytics companies and LBS providers for geofencing locations, which will enable them to capture the audiences visiting such locations.
Airports Segment will reach $22.3 billion by 2026. They represent an established end-use application sector for LBA. Several options for advertising in airlines have come up, of which location-based advertising is one that is gaining an increasing foothold. Airports now offer private Wi-Fi networks freely, which are being used by marketers to obtain location-based information about customers.
