Industry: IT and Telecommunication
Published Date: November-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 183
Report ID: PMRREP34913
The location-based advertising market is estimated to increase from US$ 107.61 Bn in 2024 to US$ 283.28 Bn by 2031. The market is projected to record a CAGR of 14.8% during the forecast period from 2024 to 2031. Innovations in mobile technology are anticipated to create new opportunities for the Location-Based Advertising (LBA) business.
Increasing use of Artificial Intelligence (AI) and Machine Learning (ML) for ad targeting is another key factor expected to drive demand. The rise of hyper-personalized marketing approaches powered by AI and ML enhances the relevance and timeliness of location-based ads. It further makes LBA an essential tool for brands aiming to connect with customers in real time.
U.S.-based Starbucks Corporation, for example, leads in terms of hyper-personalized marketing. The coffee company uses AI to deliver users personalized offers based on their prior purchases, activities, and preferences by utilizing real-time data. Coffee aficionados often feel as though their interactions with the company are customized because there are over 400,000 different ways to send hyper-personalized messages.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Location-based Advertising Market Size (2024E) |
US$ 107.61 Bn |
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Projected Market Value (2031F) |
US$ 283.28 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
14.8% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
13.7% |
North America is anticipated to hold a market share of 32% in 2024. It is expected to be driven by a well-established IT and telecom sector, widespread use of smartphones, access to high-speed internet, and early acceptance of technological trends.
North America houses various leading enterprises across sectors, including retail, e-commerce, media and entertainment, and healthcare. These mainly focus on providing personalized and tailored advertising content to users based on their evolving locations, preferences, and purchasing behaviors derived from real-time data analysis.
Demand for location-based mobile advertising platforms in the U.S. is likely to be propelled by the presence of several leading retail organizations like Amazon and Walmart, Besides, contemporary media and entertainment companies such as Netflix, Prime Video, and Hulu are also anticipated to create new growth opportunities.
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Category |
Market Share in 2024 |
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Type- Geotargeting |
35% |
Based on type, the market is divided into geofencing, geotargeting, and beaconing. Out of these, the geotargeting segment dominates the market. The segment is set to hold a share of 35% in 2024. The geotargeting strategy predominantly provides distinct content bundles to various consumers based on location.
Brands primarily employ it to augment brand visibility, boost web traffic, enhance customer engagement, reduce wasted clicks and interactions, and generate pertinent consumer conversations. Increasing competitiveness in the retail sector and market liberalization propelled by technological improvements and accessibility is estimated to boost growth. In addition, rising preference for online purchasing is a significant factor pushing the adoption of geotargeting strategies in the location based online advertising industry.
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Category |
Market Share in 2024 |
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Advertising Type- Push Advertising |
55% |
Based on advertising type, the market is categorized into push and pull advertising. Out of these, the push advertising category dominates the market worldwide. This type of advertising is highly effective for generating information and interaction as it is engineered to reach users almost every time it is implemented.
Push advertising mainly disseminates content specifically crafted to communicate promotional offers, discounts, timely transaction notifications, and features of value-added services. It is also used to inform customers about a company’s product portfolio expansion and the availability of in-demand products. It helps with frequently encompassing problem-solving strategies by leveraging immediate accessibility and extensive uses.
Growing adoption of smartphones, enhanced accessibility and availability of high-speed broadband, and prolonged screen time are anticipated to boost the segment. In addition, rising engagement by leading brands in retail, media and entertainment, healthcare, e-commerce, and other sectors are boosting growth.
GPS-based advertising is a strategic method that utilizes consumers' physical locations to provide extremely pertinent and timely communications. This advertising technique seeks to engage individuals at targeted sites where they commonly congregate, such as retail malls, transportation hubs, or particular neighborhoods. Advertisers can leverage geolocation data to customize their messages according to specific locations, further increasing the relevancy and effectiveness of their advertisements.
Location-based digital marketing provides various benefits, including the capacity to tailor messages according to the target audience's interests, immediate surroundings, and actions. A retail establishment may showcase specials for local restaurants when consumers are in a shopping neighborhood or provide discounts on winter outerwear in colder regions. This contextual relevance guarantees that the adverts resonate more profoundly with the viewer, thereby enhancing the probability of interaction.
Several firms are emerging with new solutions whereas well-established companies are focusing on research activities. For instance,
The location-based advertising market witnessed significant CAGR of 13.7% during the historical period from 2019 to 2023. It was driven by the proliferation of mobile devices and innovations in geolocation technology. The widespread mobile internet use enabled advertisers to reach users with increasingly personalized, location-based campaigns.
Retailers, restaurants, and event venues became leading adopters, using LBA to increase foot traffic and drive conversions through targeted promotions. Early technology centered around simple geofencing and proximity marketing. These often focused on capturing real-time location data to boost immediate interactions. ?
The global market is projected to experience considerable growth over the forecast period as it benefits from developments in AI, 5G networks, and data analytics. These developments will likely enable even more personalization, allowing advertisers to leverage predictive analytics to anticipate user needs based on past behaviors and real-time data.
AI-driven insights are set to enhance ad relevance, creating a highly engaging consumer experience. Moreover, Augmented Reality (AR) and Virtual Reality (VR) integration are anticipated to play a prominent role. These are projected to enable advertisers to create immersive, location-based experiences for users in retail spaces or specific public venues.
Privacy regulations and data security are also predicted to become focal points, with companies investing in compliant data practices to maintain consumer trust. This evolution will likely drive engagement rates and ad spending in the global market.
Demand to Skyrocket from Retailers and Restaurants
Improved relevance in location-based advertising is a key factor for businesses to establish substantial relationships with their target audience. Companies may attract consumer attention and attain ideal marketing outcomes by utilizing accurate and contextually pertinent communications based on location data, enhancing engagement, and increasing the efficacy of marketing campaigns.
Retail businesses can utilize geo location-based advertising to deliver customized promotions to consumers near their outlets. Customers close to a clothing store, for example, may receive notifications regarding flash sales or exclusive offers available solely at that location.
A fast-food restaurant, on the other hand, might send notifications regarding meal promotions to those living near their outlets during lunch or dinner periods. The capacity to tailor communications utilizing real-time or historical location data enables firms to address consumers' distinct demands and interests in a particular area.
The focused strategy guarantees that marketing information is pertinent and timely, increasing the probability of consumer connection and engagement. A tourist destination may also employ location-based ads to provide discounts or special activities for individuals visiting surrounding landmarks. For instance,
Innovations in Geolocation and Data Analytics Technologies to Boost Demand
Technological innovations, especially in geolocation and data analytics, are propelling location-based advertising market growth. Companies are now providing advertisers with deeper insights into consumer behavior and preferences.
Sophisticated geolocation technologies like geofencing and beacons allow advertisers to create virtual boundaries around specific areas. It enables hyper-targeted ads for consumers who enter or leave these zones. Along with AI and machine learning, these tools can analyze historical and real-time data, allowing advertisers to predict consumer needs based on past behaviors.
Retailers, for instance, can use these insights to attract shoppers with ads tailored to previous purchase patterns or interests, thereby increasing engagement. Such technological advancements make LBA highly effective in reaching audiences with contextually relevant ads, enhancing the efficacy and appeal of digital advertising. For instance,
Lack of Understanding of Place-based Advertising May Hamper Growth
The difficulty in understanding location-based mobile advertising presents a considerable obstacle for organizations seeking to utilize customized marketing efficiently. Various firms struggle with comprehending the intricacies of geotargeting, geofencing, and other location-based methodologies, resulting in their underutilization and lost opportunities for interaction.
A local coffee shop, for example, may inadequately execute geofencing. It can hence forgo the opportunity to deliver exclusive promotions or discounts to prospective customers entering a certain radius around the establishment.
A retail chain may not comprehend the intricacies of geotargeting, leading to generic advertising that does not connect with customers in certain areas. This knowledge deficiency can impede businesses from enhancing location-based advertising strategies, affecting their capacity to engage the appropriate audience at the optimal moment.
The swiftly advancing technology in the location advertising domain introduces an additional layer of intricacy. Staying abreast of improvements in geospatial technology and comprehending its integration into advertising tactics necessitates education and adaptability.
Companies to Gain Traction across Automotive and Smart Transportation Sectors
Growth of connected vehicles and smart city infrastructure creates new opportunities for LBA in the automotive industry. Modern vehicles equipped with GPS, in-dash navigation, and internet connectivity allow advertisers to reach drivers and passengers with location-specific offers. It might include real-time ads for nearby gas stations, restaurants, or retailers when a vehicle stops at a particular area.
Companies like Uber and Lyft are already experimenting with in-car ads based on a user’s route and destination. Furthermore, as smart transportation systems rise, urban environments can utilize location-based ads to offer city-specific promotions, events, or public service messages. It will likely create a dynamic and responsive advertising ecosystem that engages users as they move through cities.
It allows brands to reach a broad demographic while providing targeted and timely information, extending the reach of geofencing advertising for marketers into new environments and customer experiences?. These opportunities represent ways LBA can evolve to be more engaging, responsive, and integrated with emerging technologies, making it a significant tool for modern marketers.
The location-based marketing technology business is highly competitive, with key players including Google, Facebook (Meta), Foursquare, and GroundTruth. These companies dominate the space by leveraging extensive user data and unique technologies to deliver targeted, contextually relevant ads based on consumers' physical locations.
Google and Facebook, for example, incorporate LBA into their broad advertising ecosystems, benefiting from their extensive reach and user base data. Foursquare and GroundTruth specialize in geolocation technology and offer precise analytics. They enable advertisers to gain deeper insights into consumer behavior and foot traffic trends.
Snapchat and Uber have also made strides by integrating AR and location-based promotions within their platforms, enhancing user engagement through immersive and interactive ads. As technology advances, the competitive focus is shifting toward real-time data analytics, machine learning, and privacy-focused solutions. Hence, companies are investing in ways to deliver more effective and compliant location-based ad experiences.
Recent Industry Developments in Location-based Advertising Market
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
By Type
By Advertising Type
By Vertical
By Region
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The market is estimated to be valued at US$ 283.28 Bn by 2031.
Google LLC, Apple Inc., and GroundTruth are a few leading players.
Starbucks is a key example as it encourages consumers who are close to one of their locations to stop by for a coffee by sending them specials using location-based mobile advertising.
It is a tactic that sends customers tailored content or promotions based on their location.
Yes, Google provides location-based advertising that depends on the user’s behavior, devices, and settings on the platform.
