Location-Based Advertising to Reach $1.8 Billion in 2015, Says ABI

ABI Research predicts that businesses will
spend $1.8 billion on location-based advertising by 2015. The US mobile market is fragmented, but full of new services and experimentation.

Location-based ads are fueled by GPS,
Wi-Fi, and Cell-ID. The most successful campaigns use a mix of some or all of
these, depending on the product or service, the region, the consumers,
and the location accuracy required.

New location-based services are springing up, catering to
mobile shoppers. Some are "check-in" services such as Loopt, Gowalla,
Foursquare, and Facebook with its Places, for consumers who are willing
to "self-identify." Others, such as Shopkick, use an iPhone app to
reward shoppers just for visiting certain stores.

Loopt has more than four million registered users, Foursquare more than
two million, and with Facebook entering the picture, the location-based
advertising (LBA) market is poised to take a leap forward.

"But do people really want to be tracked? "Some might be put
off by the 'Big Brother' aspects of this," says Strother, "but it's
really about the value-exchange: if you care about getting discounts or
being rewarded for shopping, is the value-exchange high enough so that
you'll accept having your whereabouts known to these companies in return
for the benefits?"

How should a retailer begin? ABI suggests a step-by-step
guide for the would-be location-based advertiser in the report. The
main points:

Establish your marketing goals, as with any other marketing campaign.
Analyze your customers' mobile and location habits and develop your location approach.
Choose location partner(s) and determine the best technologies for your brand.
Execute your geo-targeted campaign, measure the results, and refine.

ABI Research's "Location-Based Marketing"
examines the current dynamics of the mobile location-based advertising
market: drivers, inhibitors, key players and forecasts. It profiles
consumers' opinions, and includes case studies and a step-by-step guide.

It is included in two of the firm's Research Services: Location Platforms and Enablers and Mobile Marketing Strategies
which also include other Research Reports, Research Briefs, Market
Data, ABI Insights, ABI Vendor Matrices, and analyst inquiry support.

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