Geolocation technology is growing at a very rapid rate, and the market will be considerably larger in 2018.
A Berg Insight Report is now making recent news as it has revealed that location based marketing and advertising will soon make up a healthy 7 percent of all digital ads, which means that its popularity will be expanding quite rapidly over the next four years.
This will mean that geolocation advertising will represent 2 percent of all global ad spending.
If the report from the analysis firm is correct, then it will mean that the total value of the real time mobile location based marketing and advertising marketplace will have risen from where it was last year, at $1.66 billion, at a 54 percent compound annual growth rate (CAGR), to the point that it will have reached $14.8 billion by 2018.
This will then mean that location based marketing will make up 38.6 percent of all mobile advertising.
The report also underscored some of the latest evolutions in the real time mobile location based marketing ecosystem. This includes the latest popular geolocation using technologies such as the beacons that use Bluetooth low energy (BLE). Though even the most commonly used among these methods is still relatively rare, Berg Insight predicts that the adoption of beacon using methods will have exploded before the end of 2014.
This use of beacon technology will be used the most among retail marketers that will be adopting them as a part of innovative new programs to help to engage with consumers and provide them with ads and content that they will find useful and relevant. This will also be very appealing to retailers as it will provide them with a far greater opportunity to understand how customers use their stores, from the time spent in various areas, to the actual navigation patterns.
According to Berg Insight senior analyst, Rickard Andersson, while discussing this location based marketing study, “The concept of Bluetooth marketing has been reinvigorated following Apple’s introduction of iBeacon in 2013.” He added that the broadening of the beacon ecosystem now includes a number of other very important players, including Qualcomm and PayPal, as well as some promising startups, such as Shopkick and Swirl.