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

03 Sep
2010
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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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Posted by on September 3, 2010
Filed in LBS, mobile advertising | Tags: ,

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One Response to “Location-Based Advertising to Reach $1.8 Billion in 2015, Says ABI”

  1. iPad Contracts says:
    September 4, 2010 at 4:09 am

    LBM is definitely the way forward…it’s going to be a huge industry!