Our old friends NeoMedia are in on location based ads game too
Analysing the latest developments on the location-targeted advertising market worldwide, Berg Insight has just released the third edition of its ‘Location-Based Advertising and Marketing’ report. Targeting by location in combination with other contextual and behavioural segmentation greatly enhances the relevance of mobile advertising. It has been demonstrated that location-targeted ads generate considerably higher returns than conventional mobile advertising. The associated eCPM and CTR levels are several times higher. Asia-Pacific is estimated to be the largest LBA market in 2018, followed by North America and Europe.
Berg Insight estimates that the total value of the real-time mobile LBA market worldwide was €1.2 billion in 2013, representing 14.5 per cent of the total mobile ad spend.
Growing at a compound annual growth rate of 54 per cent, the real-time LBA market is forecast to be worth €10.7 billion in 2018, corresponding to 38.6 per cent of all mobile advertising and marketing.
This means that location-based advertising and marketing will represent around 7 per cent of digital advertising, or 2 per cent of the total global ad spend for all media.
The LBA value chain is still forming and there are a large number of players involved in the ecosystem.
The industry remains fragmented and far from mature.
Many different companies are involved, ranging from LBA specialists such as Verve, Placecast and xAd, to LBS players including Intersec, Telenav and Waze, and operators such as AT&T, SFR and the UK joint venture Weve.
There is furthermore an abundance of location-aware applications and media which serve geo-targeted ads, with examples such as Foursquare and Shopkick.
Other stakeholders include coupons and deals providers including Yowza!! and COUPIES, search solutions such as YP, Hibu and Yelp, and proximity marketing providers like Proxama, NeoMedia and Scanbuy.
A number of traditional mobile advertising players are also active in the LBA space, for example Millennial Media, Madvertise and Smaato, as well as major digital and telecom players such as Google, Facebook and Apple.
The latter is together with a range of other players pushing for BLE (Bluetooth Low Energy) beacon adoption which is expected to take off this year .
Read the Press release here.
Download the report brochure from here.