Tag: location based advertising

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.

Geolocation technology is rapidly increasing in its importance when it comes to sending ads to consumers.

Though location based marketing has been an area where marketers have been pecking away over the last couple of years, trend reports are starting to indicate that this use of geolocation technology is ready for the mainstream and that consumers are going to start seeing it a great deal more.

According to a recent report, the total spending on this ad tech will breach the $10.8 billion mark by 2017.

In three years from now, spending on location based marketing is expected to represent 52 percent of all of the money spent on mobile advertising. This, according to the data from a report predicting the future of the geolocation technology, issued by BIA/Kelsey. That same report suggested that in 2012, marketers were already spending $1.4 billion on these targeted campaigns.

Clearly, in this small span of time, location based marketing spending will head skyward.

Even more interesting is, perhaps, the discovery in that same report that attribution tracking post engagement has already arrived as a “a competitive imperative for mobile advertisers, publishers, networks and ad tech providers.” This, according to the BIA/Kelsey vice president of content, Mike Boland, when discussing the firm’s forecasts.

Boland went on to explain that the penetration of smartphones, in combination with the broad spectrum of different behavioral and location signals make it possible for improved attribution to occur. This, at the same time that it is being compelled by a greater demand from advertisers to tighten their ROI. He stated that “Tying conversions back to specific ad campaigns is the holy grail of advertising, which will make campaign attribution the mobile battleground of 2014.”

The predictions from BIA/Kelsey are considered to be highly optimistic, particularly when taking into consideration the current emerging nature of this form of advertising and, potentially, its methods of attribution.

As location based marketing over mobile channels is still quite new, it is not difficult to explain why only about 3 percent of current ad dollars are headed in that direction. However, if this report is accurate, then this trend will be changing very soon, and quite rapidly.