Location Based Advertising (LBA) Market

Market Overview:

The global location based advertising (LBA) market size reached USD 98.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 225.5 Billion by 2033, exhibiting a growth rate (CAGR) of 10.86% during 2025-2033. The widespread use of smartphones and mobile apps, the escalating demand for location-specific content, rapid e-commerce growth, and surging foot traffic generation for physical stores are stimulating the market growth.

Location-based advertising (LBA) is a targeted marketing approach that leverages the geographic location of individuals or devices to deliver relevant advertisements. It is primarily made possible through the use of global positioning system (GPS) technology, Wi-Fi, and mobile data to pinpoint the precise location of a user. This method enables businesses to tailor their advertising content to the specific needs of consumers within a particular geographic area, enhancing the effectiveness of their campaigns. LBA finds applications across various industries, including retail, hospitality, and healthcare. It allows businesses to send location-specific promotions, such as discounts or offers, to potential customers in close proximity to their physical stores, thereby driving foot traffic and boosting sales. Furthermore, it encompasses various types, such as geofencing, beacon-based advertising, and proximity marketing, each with its own unique approach to reaching target audiences. 

The global location based advertising (LBA) market is influenced by the widespread adoption of smartphones and the growing use of mobile apps. Moreover, the increasing demand for personalized and location-specific content has fueled the growth of LBA as it offers tailored advertisements based on a user's location, which, in turn, is fueling the market growth. Additionally, the availability of advanced technologies, such as GPS and beacon technology, have improved the accuracy and effectiveness of LBA campaigns, which is augmenting the market growth. In line with this, the continuous growth of e-commerce and the need for businesses to drive foot traffic to physical stores are also significant drivers. Furthermore, the ability of LBA to provide real-time insights and data analytics for better decision-making has garnered interest from businesses, which is propelling the market growth. Therefore, the location based advertising (LBA) market size is expected to expand significantly, driven by the increasing demand for targeted marketing and the integration of innovative technologies that enhance campaign precision and effectiveness.

Location Based Advertising (LBA) Market Trends/Drivers:

Widespread adoption of smartphones and mobile apps

The global location-based advertising (LBA) market is significantly influenced by the widespread adoption of smartphones and the ever-increasing usage of mobile applications. As more and more individuals rely on smartphones as their primary digital devices, the potential reach of LBA has expanded exponentially. Smartphones equipped with GPS and other location-tracking technologies allow advertisers to precisely target users based on their real-time location. This level of precision enhances the effectiveness of LBA campaigns, as they can deliver contextually relevant advertisements to users at the right place and time. Mobile apps have become a central part of people's daily routines, offering a direct channel for LBA to engage with consumers. The seamless integration of location-based services within apps enables advertisers to deliver promotions, discounts, and other incentives to users when they are near a physical store or a relevant point of interest.

Demand for personalized and location-specific content

The growing demand for personalized and location-specific content is a driving force behind the expansion of the location-based advertising (LBA) market. Consumers increasingly expect content and advertisements tailored to their preferences and immediate surroundings. LBA fulfills this demand by leveraging location data to deliver highly relevant and context-aware advertisements. Users are more likely to engage with ads that offer them information, promotions, or recommendations relevant to their current location. This personalization not only enhances user experience but also increases the chances of conversion for advertisers. Brands can create a more meaningful connection with their target audience by delivering messages that resonate with users based on their geographic context, thus improving the return on investment for LBA campaigns. The location based advertising (LBA) market size is experiencing substantial growth, as businesses increasingly recognize the value of personalized, location-targeted campaigns in driving consumer engagement and improving marketing outcomes.

Rapid technological advancements

Advanced technologies, such as global positioning system (GPS) and Beacon technology, play a pivotal role in the growth of the location-based advertising (LBA) market. GPS technology, embedded in smartphones, provides precise location data, enabling advertisers to target users with pinpoint accuracy. This level of precision ensures that ads are delivered to users when they are most likely to take action, such as when they are in proximity to a retail store or a specific geographic area. Additionally, Beacon technology enhances LBA by enabling micro-location targeting within physical spaces like stores, stadiums, and airports. Beacons can trigger location-specific advertisements and promotions when users enter predefined zones, enhancing the overall shopping experience. These advanced technologies have revolutionized LBA, making it a potent tool for advertisers seeking to reach their target audience with unparalleled precision and relevance.

Location Based Advertising (LBA) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global location based advertising (LBA) market report, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, content, and application.

Breakup by Type:

• Push
• Pull

Push holds the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes push and pull. According to the report, push accounted for the largest market share.

The push type segment is driven by several key factors, which includes the ubiquity of smartphones and mobile apps, which empowers advertisers to send real-time notifications and advertisements directly to users' devices. This direct engagement increases brand visibility and potential customer interactions. Secondly, the rising demand for proactive and location-specific offers and promotions fuels the push-type LBA. It allows businesses to actively reach out to potential customers based on their geographical proximity, increasing the likelihood of conversions. On the other hand, pull type location-based advertising (LBA) segment is primarily driven by the increasing consumer reliance on location-based search and discovery apps. Users actively seek information about businesses, products, and services in their vicinity. Pull LBA capitalizes on this by ensuring that businesses appear prominently in search results when users are looking for relevant offerings nearby. Additionally, the demand for location-based loyalty programs and discounts encourages users to actively engage with pull-type LBA.

Breakup by Content:

• Text
• Multimedia

Multimedia dominates the market

The report has provided a detailed breakup and analysis of the market based on the content. This includes text and multimedia. According to the report, multimedia represented the largest segment.

In the text-based segment thrives due to its simplicity and effectiveness. Text messages convey information quickly, making it easy for consumers to grasp while on the move. Their versatility allows delivery through channels like SMS, push notifications, and in-app messages, reaching users non-intrusively with location-based offers. In an era of information overload, concise text content stands out for engaging consumers effectively. Conversely, multimedia segment is driven by its ability to captivate and create memorable brand experiences. Featuring images, videos, and interactive elements, multimedia provides a dynamic platform for advertisers to convey messages visually, increasing user engagement. This approach offers a richer context for location-based promotions, showcasing products or services in real-world scenarios. Ultimately, the location based advertising (LBA) market size is expanding as businesses leverage both text-based and multimedia formats to enhance user engagement, delivering personalized and visually appealing location-specific promotions.

Breakup by Application:

• Retail Outlets
• Public Spaces
• Airports
• Others

Public spaces hold the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes retail outlets, public spaces, airports, and others. According to the report, public spaces represented the largest market share.

In the retail outlets segment, fierce competition among brick-and-mortar stores drives the segment growth. LBA elevates the shopping experience by delivering real-time promotions and product suggestions based on a shopper's location, ultimately driving foot traffic and sales while providing valuable customer behavior data. In public spaces, LBA maximizes engagement in high-traffic areas by delivering location-specific content, promoting local businesses, events, and services, enhancing user experiences, and fostering community connections. Airports use LBA to efficiently communicate with passengers, offering flight updates and targeted advertisements based on their location, thus boosting passenger satisfaction and generating extra revenue. In the others segment, LBA finds diverse applications, from educational institutions to healthcare facilities and entertainment venues, all benefiting from its precise and context-aware communication capabilities tailored to their unique needs.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America exhibits a clear dominance, accounting for the largest location based advertising (LBA) market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America's location-based advertising (LBA) market is driven by the region's high smartphone penetration and tech-savvy consumer base. The demand for personalized marketing experiences is met by LBA's ability to deliver context-aware ads. Moreover, fierce competition among businesses in North America compels them to adopt LBA to stand out. In Europe, the growth of LBA is propelled by the region's affinity for mobile technology and its diverse consumer landscape. LBA enables businesses to cater to various languages and cultures, making it a versatile tool for advertisers. Additionally, Europe's tourism industry benefits from LBA's ability to target travelers with relevant information and promotions, enhancing their experiences. The Asia Pacific region is witnessing rapid growth in LBA market due to its massive population and increasing smartphone adoption. LBA caters to the diverse markets and languages in the region, allowing businesses to connect with local consumers effectively. In emerging economies, LBA helps bridge the gap between online and offline commerce, driving both foot traffic and digital engagement. Latin America's LBA market is driven by a growing middle class and a desire for customized shopping experiences. In the Middle East and Africa, LBA is on the rise due to increasing smartphone usage and the region's youthful population.

Competitive Landscape:

The competitive environment within the LBA market is changing and progressing. Many firms, including both well-known enterprises and new ventures, are competing for a presence in this profitable sector. These firms are continually striving to deliver creative LBA solutions that address the increasing need for tailored and location-based advertising. The market features fierce competition, with players aiming to set themselves apart through technological innovations, data analysis skills, and the capacity to provide smooth integration with different platforms and devices. Moreover, the worldwide aspect of LBA signifies that competition spans different regions, compelling businesses to broaden their reach and adjust to various market circumstances. Data privacy and adherence to regulations concerning user consent and data protection are crucial elements shaping competition. Businesses that successfully manage these complexities while ensuring trust and data security for users obtain a competitive advantage.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Emodo Inc. (Telefonaktiebolaget LM Ericsson)
• Foursquare Labs Inc.
• Google LLC
• GroundTruth
• International Business Machines Corporation (IBM)
• Near Pte. Ltd.
• Scanbuy Inc.
• Shopkick Inc. (Trax)
• Telenity Incorporated
• YOOSE Pte. Ltd.

Recent Developments:

• November 2024: Logi5, a new adtech platform, launched in India, offering hyper-targeted advertising using location intelligence and predictive analytics. It aims to improve ad precision and reduce waste by leveraging real-time and historical data, targeting industries like retail, quick-service restaurants, and finance.
• November 2024: Tesco announced plans to introduce location-specific ads through its 'Scan as you Shop' handsets, offering targeted promotions based on customers' proximity to aisles or shelves. This feature will enhance its in-store advertising experience, first launched in 2023, by delivering tailored messages as shoppers navigate the store.
• October 2024: Instacart launched new gamified features, including quests, location-based coupons, and aisle-aware ads, on its Caper Carts to enhance the in-store shopping experience. The smart carts offer personalized rewards, savings, and targeted advertising as customers shop. These innovations are being rolled out in partnership with retailers like Schnucks and Wakefern Food Corp.
• August 2023: GroundTruth got selected as the winner of the "Best Geolocation Platform" award in the sixth annual MarTech Breakthrough Awards program.

Location Based Advertising (LBA) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the location based advertising (LBA) market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global location based advertising (LBA) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the location based advertising (LBA) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.