Published on: May 2022
The market overview for Indoor Location-based Search and Advertising industry
The global location-based advertising industry was worth USD 62.35 billion in 2019, with a compound annual growth rate (CAGR) of 17.4 percent predicted from 2020 to 2027. The major causes fueling rise in demand for Location Based Advertising are rapidly rising digitalization across industry verticals, growing penetration of internet & GPS equipped mobile devices, and increasing use of consumer data by marketers (LBA). Furthermore, consumers' increased use of social media, as well as marketers' transition from traditional banner advertising to digital platforms, has boosted the use of LBA across industries. Furthermore, over the projected period, regulatory actions to protect consumer safety, the proliferation of new data sources, and developing marketing methodology are expected to boost market growth.
Explaining it further
With more than two-thirds of the world's population now using GPS-enabled mobile devices, location data has emerged as a valuable data source. According to the GSMA, there are around 5.16 billion mobile subscribers and 4.57 billion internet users worldwide. Furthermore, altering consumer behaviour to use mobile applications for social engagement and shopping has presented advertisers with a compelling opportunity to post marketing and advertising material on multiple social media platforms. Furthermore, the increased development of mobile applications by brands and advertisers using LBS is expected to enhance market growth by boosting the number of customers.
Regional Insights on Indoor Location-based Search and Advertising industry
Because of the early adoption of location-based services and advertising solutions, North America accounted for the largest revenue share of over 33% in 2019. The presence of major vendors in the region, such as Google LLP and Facebook Inc., is one of the primary drivers of regional LBA market growth. Furthermore, in 2018, Google LLP and Facebook Inc. together accounted for about 56.8% of all digital ad income in the United States. Furthermore, around 84 percent of the overall U.S. population used the internet in 2019, with around 60 percent using social media. As a result, the region's LBA market is expected to rise due to a high rate of digitization across businesses, an increase in social media users, and an increase in LBS providers.
The Rise of the Asia Pacific
Over the projected period, the Asia Pacific region is expected to increase at the fastest rate. Smartphone use, increased spending on products and services via an e-commerce platform, and a low-cost advertising model are all moving the sector forward. According to the 2020 Digital Trends in Asia Pacific report, more than 57 percent of businesses in the region are planning to boost their digital advertising spending in 2020. Furthermore, the advent of significant LBS providers in Singapore, such as Near Pte Ltd, a location-based mobile advertising platform, has been critical in supplying Malaysia and Indonesia.
Insights into Key Companies and Market Share
Because there are so many players in the LBA supply chain, significant initiatives include cooperation between navigation platform providers and network operators, provision of a wide range of location-based services, expansion capacities, mergers and acquisitions, and partnerships and agreements. Aisle411, Locately, ROXIMITY, Vistar Media, Mapbox, MomentFeed, and Skyhook, among others, are nascent startups in the field of location-based services that are anticipated to pose a threat to established competitors.
Mergers
GroundTruth and Yext, Inc., an online brand management company, announced a cooperation and integration in May 2020 to produce personalised location-based advertising campaigns for advertisers who use the Yext platform. Customers will be able to manage their listings in the Yext platform while using GroundTruth's proprietary Blueprint mapping technology to recognise and target customers with custom-tailored offerings and adverts as a result of the integration. Similarly, Foursquare and Factual Inc., a location data business, teamed together in April 2020 to offer location-based services around the world. Furthermore, the partnership will give their users an united product portfolio, including offline attribution, developer tools, and Point of Interest (POI) data, which will assist businesses in using data and insights to improve their business and marketing decisions.
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