Indoor Location-based Search and Advertising Market – Top Three Drivers From Technavio
LONDON–Technavio analysts forecast the global indoor location-based search (LBS) and advertising market to grow at a staggering CAGR of above 63% during the forecast period, according to their latest report.
Global indoor LBS and advertising market to grow at a staggering CAGR of above 63% during the period 2016-2020.
The research study covers the present scenario and growth prospects of the global indoor LBS and advertising market for 2016-2020. The report contains market segmentation based on technology channel, including push and pull advertising methods.
The global indoor location-based search and advertising market will witness significant growth during the forecast period due to the increasing use of proximity-based solutions in the retail sector. Most retailers are deploying beacons in their stores to boost sales volume. Beacons are power efficient as they operate on BLE technology. With the advent of beacon technology in the retail industry, customized shopping alerts can be sent to a consumer’s mobile device. This reduces the advertising cost of a product or service considerably. Therefore, they are deployed in locations such as airports, museums, and convention centers.
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Technavio ICT analysts highlight the following three factors that are contributing to the growth of the global indoor LBS and advertising market:
Rapid adoption of beacon technology
Beacons are low-cost devices that are attached to store shelves to ensure effective communication with customer smartphones. They are used to enhance indoor maps, payments services, and other location-sensitive product catalogs. Business marketers are compelled to improve their marketing strategies, with respect to the advances in technology, to reach the target audience with relevant advertisements and content. Beacon-triggered marketing enables marketers to send relevant information to potential and existing customers.
Abhishek Sharma, a lead M2M and connected devices analyst at Technavio, says, “Beacon-triggered marketing, an accurate model of proximity marketing, uses Bluetooth signals from the beacons located in stores. Since beacons are inexpensive and easy to deploy, their adoption rate has increased significantly. A typical beacon costs between USD 20 – USD 40. Other expenses incurred are related to the time and resources required for content creation.”
Growth of geomarketing business
Geomarketing provides numerous opportunities for businesses and benefits for customers to achieve rich customer experience and engagement in shopping activities. Depending on the user’s location, required information about nearest restaurants, services, shopping malls, bars, and lounges would be delivered to him through proximity marketing service. Proximity-based solutions not only provide relevant offers and information to customers but also help companies to track data regarding people at different venues and locations and discover common traffic patterns to understand and analyze consumer buying behavior. For example, hospitality venues use ‘customer flow’ data to determine the optimal cleaning schedules for restrooms and other areas.
“The adoption of location-based application-enabled smartphones has gained popularity in the last few years. With the increasing functionalities and processing capabilities of smartphones and tablets, users can use their mobile devices to obtain real-time directions to nearby locations, weather forecasts, and traffic updates,” adds Abhishek.
Increased adoption of smartphones
The consumer demand for smartphones has been rapidly increasing every year. This scenario has led to the introduction of new smartphone models in the market by original equipment manufacturers and development of rich and more compelling apps by application developers.
Smartphone connections have increased tremendously, reaching approximately 2.6 billion units in 2015. Also, due to the mobile internet that provides real-time information and context-aware services by leveraging cloud technology, highly personalized location services have been provided to retailers. These solutions help to maintain high customer engagement increasing retailer sales. In addition, widespread installation of cellular and BLE technologies has the capability to deliver enhanced customer experiences and engagement.
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