Why Location Based Advertising is Making Trends

Why Location Based Advertising is Making Trends

Currently, we are living in a time when technological advancements have enabled us to contacts individuals at any time and any place. It is because of the universal presence of mobile phones, especially smartphones that have GPS. The modern technologies hold the capacity for marketers to convey information and knowledge to customers based on their accessibility to places where the marketers’ products are available.

Location-based Advertising (LBA) is developed the effective blend of mobile marketing and advertising with location-based services (LBS),

What is Location based Advertising?

In particular, Location-based Advertising means information that is controlled by advertising companies especially for those locations where consumers access an advertising medium. This is a comparatively new medium that allows users to be exposed to advertising on the communication devices that they carry with them, specifically in the form of smartphones.

Location-based Advertising definition can be real-time marketing, fulfilling customer needs, and demands at the time and place they want it.

It is a personal form of advertising that uses location-based service (LBS) which is aimed at targeted users. It is now a new technology rather it has been around for some years. It is based on the same concept as majorly newspaper ads are based on the location at which newspaper is being distributed. It is the same concept but digitalized and technology-driven.

Benefits of Location-based Advertising

The location of the users along with behavior and time helps to know the mobile user’s context and make sure about the delivery of only targeted and relevant advertising content. The success of location-based marketing will depend on responses of users, sales conversion, and ultimately improved brand loyalty. If marketers send too many useless and irrelevant marketing advertisements, users will ignore them to the extent of refusing them.

There has never been a media channel than LBS with the power to go into the user’s personal space. Some of the benefits of Location-based Advertising are given below.


The Mobile channel has the ability to give more information about individual users than any other one that includes user profile, time of the transaction, behavior of the user, and especially location. By observing this data, we can say whether the consumer is at the airport, on a road or at a stadium watching a cricket game. The technology enables marketers to send the content which is highly relevant to the context of the users.

Content localization: 

Knowledge of consumers’ location allows marketers to select the content accordingly. The mobile channels have the massive opportunity to gain new advertising revenue from the local community and the only effective way to do this is to make use of the mobile location.


The location of mobile users can be leveraged to set off the delivery of advertising content to them only when the users are inside particular premises or close to the point of their interest. Moreover, advertisers and marketers could examine the travel patterns of mobile users through different time periods, as they can gain more insights into their habits.

New Revenue:

By providing localized and targeted content, marketers can reach their targeted audience more efficiently. Hence, this will create more traffic and improve the conversion rate. All these factors will result in more revenues for advertising companies.

Future Outlooks

Recent trends in consumer behavior show that mobile users want to receive relevant and promotional advertising content. If mobile location is used in the correct method, then most mobile phones will be more compelling for marketing and advertising than any other channel of media.

The location-based service and other segments of mobile services together can create more value in the next few years. The technology is widely accepted by customers because of which there are higher conversion chances. Location-based Advertising is likely to gain more traction in the coming future as it provides a good opportunity for new-age businesses.

Quality is more important than quantity, right? So the focus of the technology should be to reach the right people instead of targeting everyone. As dynamic messaging and relevant targeting will be done using well-thought plans, there are chances to attract new customers that are great for any business, isn’t it?

As technological advancements, technology can influence more offline purchases in the next few years. There future outlook for this technology is brighter than ever.

The opportunities for advertising agencies to utilize Location-based Advertising are going to improve significantly in the next few years. In different parts of the world, several forms of Location-based Advertising have already been exhibited.

Recently, one of the key components of this technology will take the involvement of GPS within mobile phones. Other technologies that enable Location-based Advertising involve the use of Bluetooth or RFID that are attached to things such as vending machines, storefronts, and poster boards to show to people with enabled devices who pass near to them. Lastly, consumers themselves can submit locations into their devices (such as city name, zip codes, and area codes) that can activate a primary level of location specificity.

As we move ahead, the Location-based Advertising technology will be going to help marketers in assisting to reach to smartphones subscribers with a specific location. However, users’ attitudes will decide the marketers’ promotional strategies of technology.


The Location-based Advertising market should seek ways to collaborate and implement strategies which establish the maximum credibility among the users around the Location-based Advertising. Well, thought-out planning and execution around how mobile location is used to enhance Location-based Advertising will be important in the next few years.

Followed with integrated and proper strategies, Location-based Advertising is a good tool. Technology is the key to unlock the most values in the Mobile advertising market. Location-based Advertising is gaining massive appeal in the new age industry.

Importantly, consumers’ acceptance of this technology should increase with time. While the industry is in a growing phase, there is still a lot of momentum to gain for technology. Location-based Advertising will be an extremely powerful tool for marketers and advertisers in the next few years. The Location-based Advertising Market size is expected to rise at a market growth of 18.5% CAGR during the forecast period.