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September 3, 2010

Mobile advertisers to spend $1.8bn on location-based campaigns in 2015: ABI Research

Market still remains very fragmented

By CBR Staff Writer

A new study from ABI Research revealed that businesses are primed to spend $1.8bn on location-based advertising in 2015 as part of their overall mobile marketing budgets.

The study said that location-based ads are enabled by three sets of technologies: GPS, Wi-Fi, and Cell-ID (location determined relative to mobile phone transmitters.)

The most successful campaigns use a mix of some or all of these, depending on the product or service, the region, the consumers, and the location accuracy required.

The research firm said that new location-based services are springing up, catering to mobile shoppers.

Some are "check-in" services such as Loopt, Gowalla, Foursquare, and Facebook with its Places, for consumers who are willing to "self-identify", others, such as Shopkick, use an iPhone app to reward shoppers just for visiting certain stores.

Practice director Neil Strother said that it’s still early days and there’s no single ‘right’ approach to location-based advertising.

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