The pie chart here shows a breakdown of where the 350 top executives from across the location and navigation industry responded to a survey and see most growth within location based services. A considerable majority of 48% answered Advertising, followed by Social Networking at 21%, Navigation at 20% and People Finding at 11%.
The results arguably display where the perceived money in location based services lie. Advertising has been one of the more obvious revenue streams, and is growing year on year, with the market size predicted to reach billions in the next few years. With much talk about Facebook rolling out location based ads, and many other industry giants anticipated to enter the space, 2012 appears to be the time when monetization strategies for location based advertising (LBA) are fully implemented.
Social Networking is another much hyped area – the term SoLoMo being bandied around as a new phenomenon linking social, mobile and location. With many social networking sites having already integrated (or planning to integrate) a location aspect to their sites, this also offers a potentially great platform for companies wanting to use LBA.
A close third, navigation is still perceived as an important area of growth, but maybe less so than it would have been a few years ago. Navigation might be seen as less commercially viable in terms of developing new services, and the revenue streams become less clear when taking the numerous free services into account.
People finding came in fourth but demonstrates that despite privacy concerns being discussed, we are still expecting people to give up their information for other people to search for them. Perhaps privacy concerns are less of a worry than previously expected?
This survey contribution was provided by:
Aoife Gaffney, VP Location
M For Mobile (Formerly NFC Insight & TheWhereBusiness)
Find out more about location based marketing at the forthcoming Location Business Summit USA, to be held in San Jose (October 16-17) this year.