$1.8B To Be Spent On Location-Based Advertising In 2015

As LBS continues to flourish, location-based advertising has picked up major steam as well. New data out from ABI Research suggests marketers will spend $1.8B on the medium in 2015, up substantially from the $42.8M expected for 2010.   Read More

1859 13
1859 13

As LBS continues to flourish, location-based advertising has picked up major steam as well.  New data out from ABI Research suggests marketers will spend $1.8B on the medium in 2015, up substantially from the $42.8M expected for 2010.

While the concept has been around a while, marketers were unclear how to best leverage the technology.  As LBS apps continue to define advertising models and rewards programs based on location, options for marketers are becoming better defined as well.  “For a number of companies, especially ones with physical stores, the value in knowing a prospect’s location is the opportunity to drive that person to a store, and thus increase foot traffic,” said Neil Strother, research analyst at ABI Research, adding that the industry is now “seeing the first shoots” of location-based advertising being commercialized. “Once in store, the retailer has a high probability of converting that visit into a sale, which is the ultimate objective.”

The report noted that analyzing customers’ mobile and location habits is a good strategy for marketers to begin taking on location-based advertising, as well as determining which platforms are best for a particular brand.  Location-based advertising (LBA) is unique compared to other methods in that each campaign is highly targeted and relevant to a particular audience, meaning marketers need to take the time to plan and optimize for the best results.

“There is a value exchange between marketers and consumers that goes along with location-based advertising,” said Strother.  The consumer is asked to share his location via phone in exchange for something of value from the marketer, which could be information about a nearby store, a coupon or a special offer, he explained.

In this article

Join the Conversation

13 comments

  1. engageexpo Reply

    I invite all Mobile Marketing Watch readers to join us for the Location-Based Marketing Summit taking place Sept. 29-30, 2010 in NYC. LBMS is the leading event for Fortune 1,000 companies seeking to maximize business strategies, including marketing and commerce, using location based services. We give you an inside look at the location based marketing activities of major brands.

    Hear from 40 speakers including: ESPN, Google, Deep Focus, Verizon, Mashable, USATODAY.com, New Jersey Nets, Adweek, Tasti D-Lite, 360i, Advertising Age, Pillsbury, Bridge Worldwide, VaynerMedia, Booyah, Location Labs, SimpleGeo, and many more. Attendees receive focused and practical industry insight that can be immediately utilized in developing a location-based strategy. Keynotes and featured speakers are listed below. Promo code ENGAGEVIP saves you $100 off the current published rate. Group rates are available. The full schedule is available at http://www.LocationMarketingSummit.com

  2. @MobileTechJeff Reply

    As a consultant for a Global 500 company that is investing large sums in LBS, I see the momentum building!

  3. Ce que l’avenir nous réserve… | Marketing@venir.com Reply

    […] pourraient devenir l’élément principal des stratégies des entreprises dans peu de temps. ABI Research estime qu’en 2010, 42,8M$ seront investis dans des stratégies marketing LBS, pour 2015, les […]

  4. Mobile Marketing Tip Reply

    LBS is a very interesting concept, and I'm sure that in a few years many companies and organisations will put a lot of money into this. The options are beyond anything: from local shopping malls to the Olympic Games.

  5. Mobilozophy LLC Reply

    As a mobile marketing provider that come from a foundation in LBS systems we have a pretty strong understanding of the importance of LBS. Though this article currently focuses on apps utilizing the phone location, I think we will see a quick rise in mobile sites utilizing the same data now that HTML5 is out. The more precise the phone coordinate become and the more people realize the value of phone advertising, the more relavent the messages become to customers and this makes for a better ROI over time for the marketer.

  6. How Predictive Analytics Can Make Money for Social Networks Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run […]

  7. How Predictive Analytics Can Make Money for Social Networks | iuvo Shopper & Community Newspaper News Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run […]

  8. Xentience (Internal) Blog » How Predictive Analytics Can Make Money for Social Networks Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run […]

  9. How Predictive Analytics Can Make Money for Social Networks « fred klumpp | design • tech • media Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run […]

  10. The Convergence of Predictive Analytics and Social Media | Blendz Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can […]

  11. The Future Is…Now! | GreenBook Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run […]

  12. Location-Based Advertising: Buyer Beware? | Thinly Sliced Blog Reply

    […] to some, though, things may be changing. With the growing market for location-based advertising, we could be headed towards a world in which shoppers are slaves to the barrage of ads being sent […]

  13. How Predictive Analytics Can Make Money for Social Networks | Marketing Puget Sound Blog Reply

    […] individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run […]