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Comprehensive 2025 Location-based Advertising Market Overview: Trends, Forecasts, and Growth Drivers

Location-based Advertising Market

Location-based Advertising Market

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What Is the Expected CAGR for the Location-based Advertising Market Through 2025?
The growth of the location-based advertising market has been meteoric in recent years, set to expand from $123.34 billion in 2024 to a whopping $142.96 billion in 2025, at a compound annual growth rate (CAGR) of 15.9%. A variety of factors have contributed to this significant growth during the historic period, including the popularity of location-based social platforms, the development and emergence of smart cities and Internet of Things (IoT), the increasing consumer desire for personalized experiences, an uptick in demand for targeted advertising, and a wider acceptance of dynamic creative optimization (DCO).

What's the Projected Size of the Global Location-based Advertising Market by 2029?
In the coming years, the market size for location-based advertising is poised for significant expansion, reaching $262.03 billion in 2029 with a compound annual growth rate (CAGR) of 16.4%. The predicted development for the period can be tied to factors like the increased adoption of mobile devices, implementation of 5G technology, usage of e-commerce services, the availability of real-time customer location data and insights into customer behavior. Significant trends during this forecast period would encompass advancements in geolocation technology, incorporation of artificial intelligence (AI) and machine learning (ML), real-time bidding (RTB), bolstered AR advertising efforts, and location intelligence platforms.

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Top Growth Drivers in the Location-based Advertising Industry: What's Accelerating the Market?
The growth of the location-based advertising market is projected to be driven by the escalating spread of mobile devices. These devices offer users unbroken internet connectivity, facilitating immediate access to information, news, and updates. Primarily, location-based advertising is enabled by mobile devices as they utilize global positioning system technology to provide targeted and relevant adverts to consumers based on their current geographical position. For example, figures from Uswitch Limited, a financial conduct authority in the UK, showed that as of February 2024, there was a rise in mobile connections in the UK to 71.8 million, pointing to a 3.8% surge (around 2.6 million connections) in comparison to 2021. It is projected that by 2025, the UK's population will be 68.3 million, with 95% (or nearly 65 million individuals) having smartphones. Hence, the expanding ubiquity of mobile devices is fueling the growth of the location-based advertising market.

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What Are the Key Trends Driving Location-based Advertising Market Growth?
Leading businesses in the location-based advertising market are strategizing to gain a competitive advantage by creating advanced technological solutions such as location-based advertising platforms. These platforms, which act as digital marketing tools, use geographic data from various sources, including mobile devices, to deliver targeted advertisements to consumers based on their current or past locations. For example, in July 2022, Moovit, a mobile advertising firm based in Israel, rolled out a new location-based advertising platform. This platform enables brands to engage with transit riders in real-time. It allows advertisers to target Moovit users based on their immediate location and transit points along their trip. To comply with the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), the platform requires users to grant permission for their location to be tracked and allows them to revoke this consent whenever they wish.

What Are the Main Segments in the Location-based Advertising Market?
The location-based advertising market covered in this report is segmented -

1) By Type: Geotargeting, Geofencing, Beaconing, Mobile Targeting, Geo-conquesting
2) By Advertisement Type: Push Advertising, Pull Advertising
3) By Promotion Type: Banner Display And Pop-ups Promotion, Video Promotion, Search Result Promotion, E-mail And Messages, Social Media Content Promotion, Voice Calling Promotion
4) By Application: Retail Outlets, Public Spaces, Airports, Other Applications
5) By Industry Vertical: Retail, Hospitality, Healthcare, Banking, Financial Services And Insurance (BFSI), Education, Technology And Media, Transportation And Logistics, Automotive, Other Industry Verticals

Subsegments:
1) By Geotargeting: Regional Targeting, City-Level Targeting, Country-Level Targeting
2) By Geofencing: Proximity-Based Advertising, Real-time Location Alerts
3) By Beaconing: Bluetooth Low Energy (BLE) Beacons, Proximity Marketing With Beacons
4) By Mobile Targeting: App-Based Targeting, Device-Based Targeting, Location-Triggered Ads
5) By Geo-Conquesting: Competitor Location Targeting, Brand-specific Location Targeting

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Which Top Companies are Driving Growth in the Location-based Advertising Market?
Major companies operating in the location-based advertising market are Google LLC, Microsoft Corporation, Facebook (Meta Platforms Inc.), International Business Machines (IBM) Corporation, Oracle Corporation, Salesforce Inc., Adobe Inc., The Proximus Group, Epsilon Data Management LLC, Yelp Inc., Yext Inc., Telenav Inc., Skyhook Interactive, Foursquare Labs Inc., Near Intelligence Inc., Knorex Inc., Telenity, GroundTruth, PlaceIQ, Emodo (Placecast), Bluedot Innovation, Radar Labs Inc., Enroute Systems Corporation, Verve Group Inc., Telesoft Technologies Ltd., Cuebiq Inc., Cidewalk Technologies Inc., Enradius LLC, Mobiquity Networks Inc., AdMoove SAS, Adello Inc.

Which Regions Will Dominate the Location-based Advertising Market Through 2029?
North America was the largest region in the location-based advertising market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the location-based advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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