Location-Based Advertising Market to Hit Nearly $15 Billion by 2018
Location-based advertising and marketing will thus represent around 7 percent of digital advertising, or 2 percent of the total global ad spend for all media, according to a Berg Insight report.The total value of the global real-time mobile location-based advertising and marketing (LBA) market will grow from $1.66 billion in 2013 at a compound annual growth rate (CAGR) of 54 percent to $14.8 billion in 2018, according to a research report from the analyst firm Berg Insight. This will then correspond to 38.6 percent of all mobile advertising and marketing. Location-based advertising and marketing will thus represent around 7 percent of digital advertising, or 2 percent of the total global ad spend for all media, the report projected. The report also highlighted some of the recent developments in the real-time mobile LBA space, including the concept of beacons based on Bluetooth low energy (BLE). While so far remaining sparsely deployed, Berg Insight anticipates that beacon adoption will take off in 2014 as retailers launch innovative marketing schemes and leverage the possibility to analyze how customers roam and dwell in stores and aisles.
"The concept of Bluetooth marketing has been reinvigorated following Apple's introduction of iBeacon in 2013," Rickard Andersson, senior analyst with Berg Insight, said in a statement.