TechNavio, an independent tech-focused research firm, revealed in its newest report that the popularity of mobile devices and media is spurring major growth in the Location-Based Search and Advertising Market in the U.S.
When it comes to this fast-growing market, TechNavio is now projecting a healthy CAGR of 43.01 percent from 2013-2018.
Location-based services (LBS) use location, determined by a user’s mobile device, to search for and promote products and services near the user.
Location-based advertising, TechNavio explains, is largely based on the integration of three variables: What (the user’s requirement), where (their location) and now (a user’s necessity for real-time information).
In recent years, the penetration and sales of GPS-enabled smartphones and tablets have increased significantly in the US. In 2013, the US reported a penetration rate of more than 65 percent for location-enabled smartphones, and this is expected to increase to over 90 percent by 2016.
“The huge number of smartphones being used in the US acts as a catalyst for the incremental adoption of mobile LBS applications such as location discovering, friend finder and location-based advertising, shopping and networking,” explains Faisal Ghaus, Vice President of TechNavio. Consequently, enterprises have finally begun to recognize the value in offering adverts specific to their customer’s location and are adopting LBS to attract new customers.