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Location-Based Advertising and Marketing - 3rd Edition

  • ID: 2826291
  • Report
  • Region: Global
  • 185 Pages
  • Berg Insight AB
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Mobile Location-Based Advertising will be worth € 10.7 billion in 2018


  • AdMoove
  • Google
  • Microsoft
  • Placecast
  • Shopkick
  • Vouchercloud
  • MORE
Learn why location-based advertising and marketing is not just for early adopters but a great opportunity for brand marketers and retailers today. The total value of the global real-time mobile location-based marketing and advertising market will grow from € 1.2 billion in 2013 at a CAGR of 54 percent to € 10.7 billion in 2018. Find out what the industry leaders are doing and anticipate their strategies for the future in this 190 page report in the LBS Research Series.

Location-Based Advertising and Marketing is the third consecutive report from Berg Insight analysing the latest developments on the location-targeted advertising market worldwide.

This strategic research report provides you with 190 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

This report will allow you to:
-Identify tomorrow’s most profitable LBA opportunities in the mobile space.
-Understand the fundamentals of the ad-based mobile media revenue models.
-Recognise the key enablers of growth in the LBA market.
-Comprehend the relative importance of digital channels compared to other advertising media.
-Learn about the experiences of LBA campaigns by top global brands.
-Profit from valuable insights about LBA business models.

This report answers the following questions:
-How can location technology improve the relevancy of mobile advertising?
-What are the experiences from mobile LBA campaigns so far?
-How should mobile LBA be integrated in the marketing media mix?
-Which categories of companies can leverage mobile location-based advertising?
-Which are the LBA specialists that stand out of the crowd?
-How are mobile operators such as AT&T, Orange and SFR approaching LBA?
-How are traditional mobile advertising players and major digital and telecom players positioning themselves in this market?
-How well suited for LBA are the existing and future mobile media channels?
-Which are the main drivers and barriers on the market?

Who should buy this report?
Location-Based Advertising and Marketing is the foremost source of information about the status, future trends and technology developments on this market. Whether you are a telecom vendor, mobile operator, advertising agency, investor, consultant or application developer, you will gain valuable insights from this in-depth research.
Note: Product cover images may vary from those shown
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  • AdMoove
  • Google
  • Microsoft
  • Placecast
  • Shopkick
  • Vouchercloud
  • MORE
Executive summary
1 Advertising and the mobile channel
1.1 Advertising and digital media
1.1.1 The marketing and advertising industry
1.1.2 The Internet media channel
1.1.3 The mobile media channel
1.2 Mobile advertising and marketing
1.2.1 The mobile handset as an advertising platform
1.2.2 Advertising on the mobile handset
1.2.3 The mobile advertising ecosystem
1.3 Mobile media channels and formats
1.3.1 Messaging
1.3.2 Mobile web
1.3.3 Mobile applications
1.4 Mobile marketing industry overview
1.4.1 Factors influencing the potential market value of mobile advertising
1.4.2 Current state and future trends

2 Mobile location technologies and services
2.1 Mobile network location architectures and platforms
2.1.1 Location architecture for GSM/UMTS networks
2.1.2 Location architecture for LTE networks
2.1.3 Control Plane and User Plane location platforms
2.1.4 Probe-based and handset client-based location platforms
2.2 Mobile location technologies and methods
2.2.1 Cell-ID
2.2.2 Enhanced Cell-ID
2.2.3 RF Pattern Matching
2.2.4 OTDOA and U-TDOA
2.2.5 GNSS: GPS, GLONASS, Galileo and Compass/BeiDou 2
2.2.6 Bluetooth and Wi-Fi positioning
2.2.7 Hybrid and mixed mode location technologies
2.2.8 Comparison of location technologies
2.3 Overview of mobile location-based services
2.3.1 Mapping and navigation
2.3.2 Local search and information
2.3.3 Social networking and entertainment
2.3.4 Recreation and fitness
2.3.5 People locator services

3 Mobile location-based advertising and marketing
3.1 Definitions and variants of LBA
3.1.1 Static versus real-time location targeting
3.1.2 Push and pull LBA
3.1.3 LBA formats
3.2 Market receptiveness
3.2.1 Adoption patterns among brands and merchants
3.2.2 Outcomes of different LBA strategies
3.2.3 Consumer attitudes
3.2.4 Privacy concerns
3.3 Case studies
3.3.1 Philips introduces retail marketing solution using light-based communication
3.3.2 Proxama’s NFC technology is used to market Guinness stout
3.3.3 iBeacons leveraged by publisher to grant magazine access at select locations
3.3.4 Tesco markets FIFA 13 game with innovative LBA campaign
3.3.5 Thinknear helps Benadryl to target allergy sufferers through
3.3.6 Disney markets video game platform via NFC-enabled OOH posters
3.3.7 Plot Projects enables location-based notifications for apps
3.3.8 Placecast teams with HARMAN to enable in-car LBA
3.3.9 Meat Pack launches HiJack campaign to attract customers from competitors . 75
3.3.10 xAd’s LBA technology used by Calvin Klein to drive awareness and traffic
3.3.11 TAPTAP introduces a location-based mobile ad platform for retail clients
3.3.12 McDonald’s drives sales with LBA campaign powered by Todacell
3.3.13 Heinz uses QR codes to create engagement and support causes

4 Market forecasts and trends
4.1 LBA industry analysis
4.1.1 Classification of LBA offerings
4.1.2 LBA specialists
4.1.3 Mobile operators
4.1.4 LBS and navigation providers
4.1.5 Location-aware applications and media
4.1.6 Mobile coupons and deals providers
4.1.7 Mobile search providers
4.1.8 Proximity marketing providers
4.1.9 Traditional mobile advertising players
4.1.10 Major digital and telecom players
4.1.11 Industry associations
4.1.12 Mergers and acquisitions
4.2 LBA landscape trends
4.2.1 Drivers for success
4.2.2 Barriers to adoption
4.2.3 Overcoming the barriers
4.3 Market forecasts
4.3.1 Total, digital and mobile advertising market value forecasts
4.3.2 LBA market value forecast
4.4 Final conclusions
4.4.1 Location filtering improves the effectiveness of mobile marketing campaigns 103
4.4.2 Steadily increasing shares of ad budgets devoted to LBA
4.4.3 LBA offers new possibilities for all categories of advertisers
4.4.4 Real-time hyper-local targeting is expected to get a boost in the near term
4.4.5 Best practices include sound opt-ins and combining location with other data 105
4.4.6 Mobile search and SMS campaigns are important high-volume LBA formats . 105
4.4.7 Real-world retargeting and other innovations push the boundaries of LBA
4.4.8 Mobile attribution promises to quantify the impact of LBA
4.4.9 Location targeting will eventually become ubiquitous

5 Company profiles and strategies
5.1 LBA specialists
5.1.1 AdMoove
5.1.2 CityGrid Media
5.1.3 JiWire
5.1.4 LEMON Mobile
5.1.5 PayPal Media Network
5.1.6 Placecast
5.1.7 PlaceIQ
5.1.8 Verve Mobile
5.1.9 xAd
5.1.10 Xtify (IBM)
5.1.11 YOOSE
5.2 Mobile operators
5.2.1 AT&T Mobility
5.2.2 Orange Group
5.2.3 SFR
5.2.4 Verizon Wireless
5.2.5 Weve
5.3 LBS and navigation providers
5.3.1 Intersec
5.3.2 mxData
5.3.3 Sensewhere
5.3.4 Telenav
5.3.5 Telenity
5.3.6 TomTom
5.3.7 Waze
5.4 Location-aware applications and media
5.4.1 Foursquare
5.4.2 Gbanga
5.4.3 SCVNGR/LevelUp
5.4.4 Shopkick
5.5 Mobile coupons and deals providers
5.5.2 Groupon
5.5.3 Vouchercloud
5.5.4 Yowza!! (Spindle)
5.6 Mobile search providers
5.6.1 Hibu
5.6.2 Mobile Commerce
5.6.3 Poynt (Sprylogics)
5.6.4 Yelp
5.6.5 YP
5.7 Proximity marketing providers
5.7.1 NeoMedia
5.7.2 Proxama
5.7.3 Proximus Mobility (MobileBits)
5.7.4 Scanbuy
5.8 Traditional mobile advertising players
5.8.1 InMobi
5.8.2 Madvertise
5.8.3 Millennial Media
5.8.4 Nexage
5.8.5 Smaato
5.8.6 Sofialys
5.9 Major digital and telecom players
5.9.1 Apple
5.9.2 Facebook
5.9.3 Google
5.9.4 Microsoft
5.9.5 Yahoo!



List of Figures
Figure 1.1: Global advertising expenditure by media (Worldwide 2012)
Figure 1.2: Top 20 advertisers (Worldwide 2010)
Figure 1.3: Online advertising expenditure by region (Worldwide 2012)
Figure 1.4: Mobile subscriptions and handset sales by region (Worldwide Q2-2013)
Figure 1.5: Stakeholders in the mobile marketing value chain
Figure 2.1: Location architecture overview
Figure 2.2: Cellular frequency reuse pattern
Figure 2.3: Cell-ID location methods
Figure 2.4: Performance and limiting factors for network-based location technologies
Figure 2.5: Performance and limiting factors for hybrid location technologies
Figure 3.1: Examples of location granularities suitable for LBA
Figure 4.1: Categorisation of LBA industry players
Figure 4.2: Acquisitions in the LBA ecosystem (2013–2014)
Figure 4.3: Total, digital and mobile ad expenditure by region (Worldwide 2012–2018)
Figure 4.4: Mobile advertising expenditure by format and region (Worldwide 2013)
Figure 4.5: LBA revenues and forecasts by region (Worldwide 2012–2018)
Figure 5.1: Overview of LBA industry players
Figure 5.2: Ads by CityGrid featured in the Nokia HERE Maps app
Figure 5.3: LevelUp app interface and Sweetgreen white-label solution
Figure 5.4: NFC-enabled bus stop powered by Proxama
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  • AdMoove
  • Google
  • Microsoft
  • Placecast
  • Shopkick
  • Vouchercloud
  • MORE
According to this new research report, the total value of the global real-time mobile location-based advertising and marketing (LBA) market will grow from € 1.2 billion in 2013 at a compound annual growth rate (CAGR) of 54 percent to € 10.7 billion in 2018.

This will then correspond to 38.6 percent of all mobile advertising and marketing. Location-based advertising and marketing will thus represent around 7 percent of digital advertising, or 2 percent of the total global ad spend for all media. The past year has seen a number of significant developments in the real-time mobile LBA space. One example is the concept of beacons based on Bluetooth low energy (BLE). “The concept of Bluetooth marketing has been reinvigorated following Apple’s introduction of iBeacon in 2013”, said Rickard Andersson, Senior Analyst, Berg Insight.

While so far remaining sparsely deployed, Berg Insight anticipates that beacon adoption will take off in 2014 as retailers launch innovative marketing schemes and leverage the possibility to analyse how customers roam and dwell in stores and aisles. “The burgeoning BLE-based beacon ecosystem is now populated by a large number of diverse players including PayPal, Qualcomm and start-ups such as Estimote, Swirl and Shopkick”, said Mr. Andersson. He adds that these companies constitute a completely new set of players competing alongside established LBA specialists like Verve, Placecast and xAd, LBS players including Intersec, Telenav and Waze, and operators such as AT&T, SFR and the UK joint venture Weve.
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- AdMoove
- Apple
- AT&T Mobility
- CityGrid Media
- Facebook
- Foursquare
- Gbanga
- Google
- Groupon
- Hibu
- InMobi
- Intersec
- JiWire
- LEMON Mobile
- Madvertise
- Microsoft
- Millennial Media
- Mobile Commerce
- mxData
- NeoMedia
- Nexage
- Orange Group
- PayPal Media Network
- Placecast
- PlaceIQ
- Poynt (Sprylogics)
- Proxama
- Proximus Mobility (MobileBits)
- Scanbuy
- SCVNGR/LevelUp
- Sensewhere
- Shopkick
- Smaato
- Sofialys
- Telenav
- Telenity
- TomTom
- Verizon Wireless
- Verve Mobile
- Vouchercloud
- Waze
- Weve
- xAd
- Xtify (IBM)
- Yahoo!
- Yelp
- Yowza!! (Spindle)
- YP
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The Internet of Things is very diverse. There are hundreds of different use cases, each with different dynamics. The starting point is to segment the market.

The analyst begins with a number of sectors: Automotive, Cities, Health, Industry, Home, Industrial, Energy, Retail and Consumer Electronics. Each of these sectors breaks down into a number of applications. In total across all sectors, the analyst examines around 150 separate applications. It is at this application level that they generate their IoT forecast. The analyst builds reliable data bottom-up. They take into consideration the current adoption rate, regulations, demographics, vertical-specific statistics, value chain structure, etc.

The rigorous data collection methods are based on first-hand and secondary sources. The analyst conducts many hundreds of executive interviews on a yearly basis with companies from all parts of the IoT value chain.  They talk to on a regular basis all major mobile operator groups and regulators as well as the chipset, module, and terminal vendors. They also interview many companies in each of the vertical markets.