Location-Based Ads will be Worth €6.5bn in 2017

Real-time location ads will make up 33 per cent of all mobile marketing in 2017 and will be worth a total of €6.5bn (£5.5bn), growing from € 526m (£447m) last year.

Ad formats like location-specific SMS, mobile search and coupons will come to represent around 5 per cent of all digital advertising, according to Berg Insight, or 1 per cent of total global ad spend across all media, the report said.

“Key drivers for location-based advertising (LBA) include the growing adoption of both outdoor and indoor location technologies, as well as the increasing consumer acceptance of location-based services in general”, said Rickard Andersson, telecom analyst at Berg Insight. “Local businesses can extend their marketing initiatives with mobile components such as location-sensitive coupons using online self-services, while big box retailers leverage enterprise LBA solutions for conquesting and to combat showrooming.”

The Location-Based Advertising and Marketing report highlights that the market has not reached maturity and so the advertising ecosystem is still very fragmented.

 

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