The inexorable rise of data-driven marketing is set to fuel major growth in location-based advertising, with a new forecast predicting the global industry will be worth $163.5bn (£123bn) by 2026, witnessing a compounded annual growth rate of 18.5% over the next five years.
According to a new Research & Markets report, it is the rapidly growing digitalisation across business verticals, increasing adoption of Internet and GPS enabled mobile devices, and the accelerated use of customer data by advertisers that are the key factors behind the surge in demand.
Add into the mix, the increased use of social media by consumers, and advertisers’ expansion from conventional banner ads to new channels, and it is perhaps not too difficult to discover why location marketing is expanding across all industries.
One of the key driving forces is the fact that, under existing legislation, consumers have to opt-in to receive communications, meaning location-based marketing is being embraced through consumer choice, not just brands’ desire to target the public wherever they are; be that at home, at the shops or somewhere in between.
The digital outdoor advertising industry is also a major user of the technology. Kinetic’s “Journeys”, which delivers a greater understanding of audience behaviours “on the go” and Posterscope’s “Ecos Now”, which enables the planning, purchase and activation of digital campaigns in near real-time when it is going to have most impact, are two recent examples of OOH innovations.
And, according to “The Moments of Truth” study commissioned by Clear Channel, JCDecaux UK and Posterscope, client marketers who embrace data-driven “contextually relevant messaging” in their digital out of home campaigns – which takes into account location, timing and pertinency – achieve an average +17% uplift in campaign effectiveness.
The Research & Markets report is the latest in a long line of forecasts which claim that the data-driven marketing industry will thrive in the post-Covid world.
The Harnham Recruitment Data & Analytics Salary Guide, published in July, showed that as businesses look to streamline existing processes and establish new ones, they are more reliant than ever on data professionals.
Meanwhile, the global data analytics market is also predicted to soar over the next five years, driven by businesses – both large and small – craving a better understanding of their customers. It is projected to be worth $512bn by 2026, and there will also be sharp rises in value for the big data market (up from $138.9bn to $229.4bn by 2025); subscription analytics (up from $9.7bn to $126.5bn by 2026) and ID solutions (doubling to $4.85bn).
The biggest winner by far, however, will be those companies operating in the digital transformation sector, with technologies and services that enable so-called “DX” forecast to soar to $7.4 trillion in three years, driven by data intelligence and analytics.
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