Location-based Advertising Market Size - By Advertising Type (Push, Pull), Type (Geotargeting, Geofencing, Beaconing, Mobile Targeting, Geo-conquesting), End User (Travel & Hospitality, Entertainment & Media, Healthcare) & Forecast 2023 - 2032

Location-based Advertising Market Size - By Advertising Type (Push, Pull), Type (Geotargeting, Geofencing, Beaconing, Mobile Targeting, Geo-conquesting), End User (Travel & Hospitality, Entertainment & Media, Healthcare) & Forecast 2023 - 2032

Location-based Advertising Market Size

Location-Based Advertising Market was valued at USD 81.7 billion in 2022 and is estimated to register at 14% CAGR  between 2023 and 2032. Omnichannel location-based advertising combines online and offline data, propelling market expansion. This approach enhances personalized ad delivery by leveraging precise geotargeting across various platforms, fostering increased customer engagement. Positioned as an omnichannel location-based advertising agency, Osmo integrates offline and online realms with the extensive uses of AI and ML to challenge traditional advertising methods, pioneering a new era in targeted & data-driven advertising strategies.

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Governments are investing in geospatial technology by fostering infrastructure and policies supporting location-based data. These investments facilitate advanced mapping, GPS, and open data initiatives, thereby enabling accurate location-based services. Such support fuels the location-based advertising industry by providing more precise and reliable geotargeting capabilities. For instance, in December 2022, the Indian government launched the National Geospatial Policy, targeting startup encouragement and technological advancement. This initiative was aimed at propelling geospatial innovations to aid diverse sectors reliant on accurate location data.
 

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tricter privacy regulations and heightened consumer apprehensions surrounding data privacy and tracking hamper location-based advertising. Adhering to stringent regulations while delivering personalized ads based on precise location data is challenging. Balancing the need for targeted advertising while upholding user privacy becomes complex. The growing awareness and concerns regarding data privacy impact the collection, utilization, and ethical handling of location information, limiting the efficacy of location-based advertising strategies.

COVID-19 Impact

During the COVID-19 pandemic, the location-based advertising market experienced positive shifts. Businesses adapted by using location-based strategies to target consumers in new ways, emphasizing local outreach to engage with nearby customers. With changing consumer behavior and the increased importance of online interactions, location-based advertising facilitated more precise targeting. It enabled businesses to effectively reach audiences as they spent more time within their local areas, contributing to a more focused and relevant advertising approach.

Location-based Advertising Market Trends

The emerging trend in location-based advertising involves the integration of Artificial Intelligence (AI) and Machine Learning (ML) to conduct sophisticated data analysis. This integration enables a deeper comprehension of consumer behavior patterns by processing vast location-based data. AI and ML algorithms decode and predict behavioral trends, preferences, and purchase patterns based on location-specific information. This smarter analysis enhances the accuracy of targeted advertising, allowing businesses to predict and cater to consumer needs with more precision and efficiency in their marketing strategies.

The rising trend of hyper-personalization in location-based advertising focuses on delivering highly targeted and personalized ad content using precise location data. By harnessing geolocation details, advertisers curate messages, offers, and content that resonate with individual preferences and immediate surroundings. This approach ensures heightened relevance for consumers, offering more meaningful and engaging experiences. Leveraging real-time location information allows for customized marketing efforts, leading to increased consumer engagement, satisfaction, and ultimately, higher conversion rates in advertising campaigns.

Location-based Advertising Market Analysis

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Based on advertising type, the push segment accounted for around 60% of the market share in 2022 and is anticipated to witness substantial growth due to its ability to deliver highly targeted and contextual messages to consumers based on their real-time location. This personalized approach, combined with advancements in geofencing, beacon technology, and real-time data, allows for immediate & relevant notifications, offers, and alerts, resulting in increased customer engagement and conversions and boosting the push segment's expansion.

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Based on type, the geofencing segment accounted for a market share of around 30% in 2022 and is projected to witness significant growth owing to its ability to precisely target consumers within specific geographical boundaries. This technology allows businesses to send customized messages, promotions, and alerts to individuals within defined geographic areas, enhancing the relevance of advertising content. As companies seek more precise & localized marketing strategies, the effectiveness of geofencing in delivering personalized and timely information to potential customers is spurring segment growth.

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North America is experiencing growth in the location-based advertising market. The region accounted for a market share of over 30% in 2022 and is slated to register significant growth over the forecast period. This region is known for high smartphone penetration, technological advancements, and a robust digital infrastructure. The emphasis on personalized marketing and the presence of key market players investing in innovative geospatial technologies contribute to its growth. The regional market's receptive consumer base and a strong focus on hyper-targeted advertising strategies further fuel the expansion of location-based advertising within North America.

Location-based Advertising Market Share

The major players operating in the location-based advertising industry are-

• Google LLC
• Meta Platform Inc.
• Amazon.Com Inc
• Microsoft Corporation
• Oracle Corporation
• IBM Corporation
• Salesforce, Inc
• Adobe, Inc.
• Yext
• Simpli.fi

Google LLC and Meta Platforms Inc. dominate the location-based advertising business due to their vast user bases and extensive reach across digital platforms. With detailed user data and advanced ad targeting tools, they offer precise and effective location-based advertising solutions, making them go-to choices for businesses seeking to target specific audiences, resulting in their dominance in this advertising landscape.

Location-Based Advertising Industry News

• In February 2023, Google Ads announced changes in location targeting, eliminating less impactful options to enhance the targeting experience for advertisers. This simplification is aimed at aligning and improving the intuitive process, offering a more straightforward & effective approach to reaching desired audiences through location-based settings.

This location-based advertising market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Advertising Type

• Push
• Pull

Market, By Type, 2018 – 2032

• Geotargeting
• Geofencing
• Beaconing
• Mobile targeting
• Geo-conquesting

Market, By End User

• Retail & E-commerce
• Travel & hospitality
• Entertainment & media
• Healthcare
• Automotive & transportation
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

What is the size of location-based advertising market?

The market size of location-based advertising was worth USD 81.7 billion in 2022 and is estimated to register at 14% CAGR through 2023 and 2032 as omnichannel location-based advertising combines online and offline data, fostering increased customer engagement.

Why is push location-based advertising gaining traction?

The push segment accounted for around 60% of the market share in 2022 and is anticipated to witness substantial growth due to its ability to deliver highly targeted and contextual messages to consumers based on their real-time location.

How big is North America location-based advertising industry?

North America location-based advertising market accounted for a revenue share of over 30% in 2022 and is slated to register significant growth through 2032 as the region is known for high smartphone penetration, technological advancements, and a robust digital infrastructure.

Which companies define the competitive landscape of location-based advertising market?

Google LLC, Meta Platform Inc., Amazon.Com Inc, Microsoft Corporation, Oracle Corporation, IBM Corporation, Salesforce, Inc, Adobe, Inc., Yext, and Simpli.fi.