Pyramid Research, a Cambridge based market research firm, recently released a 70 page research report, Location-Based Services: Market Forecast, 2011-2015. The report provides an overview and detailed size estimates of the global location-based services market (more specifically, it focuses on the positioning of mobile operators within this market). The analysts behind the report paint a picture of massive growth in the upcoming years of both location-based services and location-based advertising:
In 2008 the location-based advertising market, very much in its infancy, was worth $86 million. This represented 10% of all mobile advertising. Last year, the market boomed to reach $588 million in revenues. This represented 18.5% of all mobile advertising last year.
By 2015, Pyramid Research has estimated that location-based advertising will reach $6.2 billion in revenues. That’s 35% of total mobile advertising revenue projected in 2015. When looking at location based services as a whole, these analysts project revenues to grow from $2.8 billion in 2010 to $10.3 billion in 2015. Location-based advertising will represent 60% of that market.
Aside from revenue projections, the report details a few other interesting points:
- In 2008, mobile operators like AT&T and Verizon controlled 80% of all location-based service revenue. Last year this has fallen to around 50%
- Navigation apps are the largest revenue generators
- Navigation, local search and people-locating services are key areas for growth in the upcoming years
If you would like to read the report in full, which includes both primary and secondary research, it will cost you a smooth $3,495. You can download an excerpt here, though, after forking over some personal info.