As mobile advertising models continue to evolve around LBS apps, ABI research is predicting total spend on location-based advertising will top $1.8 billion in 2015.
The projection is substantially higher than the $42.8M expected for 2010, but is geared to pick up major steam as LBS providers continue to build successful ad-models around the interaction trends they’ve noticed from their users. The aspect of location is one of the most valuable targeting attributes available to marketers, and they’re beginning to take notice in droves.
”For a number of companies, especially ones with physical stores, the value in knowing a prospect’s location is the opportunity to drive that person to a store, and thus increase foot traffic,” said Neil Strother, research analyst at ABI Research, adding that the industry is now ”seeing the first shoots” of location-based advertising being commercialized. ”Once in store, the retailer has a high probability of converting that visit into a sale, which is the ultimate objective.”
Adding location-based targeting to the mix can be a delicate art, however, as marketers need to fully understand customers’ mobile and location habits in addition to determining which platforms are best for a their particular brand. ”There is a value exchange between marketers and consumers that goes along with location-based advertising,” said Strother. “The consumer is asked to share his location via phone in exchange for something of value from the marketer, which could be information about a nearby store, a coupon or a special offer,” he explained.
Regardless, location-based mobile advertising and marketing is the way of the future and marketers wanting to leverage the medium need to educate themselves while it’s not too late.