Key Insights
Essential data points from our research
The global location-based services market size was valued at $45.49 billion in 2020
The location-based services market is projected to reach $318.64 billion by 2030
Location-targeted mobile ad spend is forecasted to reach $32.4 billion by the end of 2023
83% of marketers say their campaigns are more effective when using location data
Location-based personalization can increase engagement rates by up to 2.5 times
53% of marketers used location data to target customers and saw higher conversion rates
90% of smartphone owners use location services to get directions
57% of consumers are willing to share their location data if they receive a coupon or deal
"Near me" searches have grown by more than 900% over the last two years
Geofencing is used by 92% of smartphones
The number of proximity sensors deployed globally is expected to hit 400 million by 2024
50% of brands use geofencing to target customers near competitor locations
76% of people who search on their smartphones for something nearby visit a business within a day
28% of nearby searches result in a purchase
Location-based mobile coupons have a redemption rate of 10-12%
Campaign Effectiveness & ROI
- 183% of marketers say their campaigns are more effective when using location data
- 2Location-based personalization can increase engagement rates by up to 2.5 times
- 353% of marketers used location data to target customers and saw higher conversion rates
- 4Ads with location data have a 20% higher click-through rate compared to generic ads
- 589% of marketers said location-based marketing resulted in higher sales
- 6Companies using location-based data see an 85% increase in customer base
- 7Location-specific push notifications receive a 40% open rate conversion
- 8Effective use of location data can improve marketing ROI by up to 80%
- 986% of marketers said location-based advertising produced a growth in their customer base
- 10Adding location data to ad impressions increases pricing accuracy and value by 30%
- 11Marketers using location data see a 12% lift in average order value (AOV)
- 124.5% of location-based notifications are clicked compared to 1.5% of standard push notifications
- 13Geo-conquesting campaigns can result in a 30% increase in foot traffic from competitor locations
- 1460% of marketers say location data provides deeper insights into customer journeys
- 15Campaigns utilizing weather and location triggers show a 2x increase in purchase intent
- 16Retargeting based on visit history increases conversion likelihood by 70%
- 1777% of marketers say location data improves the accuracy of their targeting
- 18Brands using location intelligence reduce customer acquisition costs by 15-20%
- 19Social media posts tagged with a location result in 79% higher engagement
- 2091% of marketers using location data say it helps them understand their audience better
Interpretation
These statistics make one thing clear: using location data turns scattershot marketing into precision campaigns, increasing engagement by up to 2.5 times, boosting click through rates, conversions and average order value, expanding customer bases and sales by large margins, cutting acquisition costs, improving pricing accuracy and often nearly doubling ROI, so any brand not using location intelligence is voluntarily handing measurable growth to competitors.
Consumer Behavior & Privacy
- 190% of smartphone owners use location services to get directions
- 257% of consumers are willing to share their location data if they receive a coupon or deal
- 3"Near me" searches have grown by more than 900% over the last two years
- 430% of all mobile searches are related to location
- 580% of consumers indicate they want location-based alerts to be helpful, not just sales-driven
- 672% of consumers say they will only engage with marketing messages that are personalized to their specific interests and location
- 750% of consumers are comfortable sharing their location to specific apps for improved service
- 840% of users will disable location services if they feel a brand is over-messaging them
- 960% of smartphone users use their device to find a local business at least once a week
- 1070% of consumers willingly share their location for loyalty rewards points
- 1128% of consumers report using location-based apps to find parking
- 1246% of people check location-based reviews before visiting a business
- 1354% of millennials are willing to share their real-time location with brands
- 141 in 3 consumers decided to visit a store immediately after seeing a location-based ad
- 15Privacy concerns regarding location tracking have risen by 12% in the last year
- 1661% of smartphone users are more likely to buy from mobile sites that customize information to their location
- 1725% of users keep their location services on at all times
- 1882% of smartphone users turn to their phone to make a decision about a purchase they are about to make in a store
- 19Consumers are 3x more likely to share location data with a restaurant or grocer than a retail clothing store
- 2059% of consumers use Google Maps to find a local business
Interpretation
Location has become the currency of commerce, with consumers gladly trading their latitude for coupons, loyalty points and helpful parking or service, using maps, reviews and surging "near me" searches to make instant purchase decisions while demanding genuinely useful, hyperlocal personalization and punishing brands that over-message or violate privacy by disabling tracking or disengaging.
Market Trends & Growth
- 1The global location-based services market size was valued at $45.49 billion in 2020
- 2The location-based services market is projected to reach $318.64 billion by 2030
- 3Location-targeted mobile ad spend is forecasted to reach $32.4 billion by the end of 2023
- 4Nearly 90% of marketers plan to increase their use of location data in the next two years
- 5The compound annual growth rate (CAGR) for the location-based marketing market is estimated at 24.3% from 2020 to 2027
- 6Major retailers allocate approximately 52% of their marketing budgets to location-based marketing
- 7North America accounts for the largest share of the global location-based marketing services market
- 8By 2025, location-based advertising will account for nearly 45% of all mobile ad spending
- 9Over 75% of brands engage in some form of location-based marketing strategy
- 10Marketing budgets for location data increased by 14% on average in the last fiscal year
- 1184% of marketers plan to increase their investment in location data over the next 3 years
- 12The proximity marketing market is expected to grow by $48 billion significantly during 2020-2024
- 13Mobile advertising spending generally is expected to surpass $339 billion by 2023 heavily influencing LBM
- 1467% of marketing leaders use location data to determine future marketing strategies
- 15European location-based marketing spend is growing at a rate of 18% year-over-year
- 16Small businesses are increasing their location-based ad spend by 22% annually
- 17The indoor location market size is expected to grow from $7.11 billion in 2017 to $40.99 billion by 2022
- 1840% of marketing executives say location-based marketing is the most critical mobile opportunity
- 19Investment in beacons and iBeacons for marketing is projected to rise by 28% next year
- 2094% of C-level executives believe location data is essential to business success
Interpretation
From a $45.5 billion market in 2020 to a projected $318.6 billion by 2030, location-based marketing has exploded from novelty to boardroom necessity, driving massive mobile ad and proximity-tech investment, commanding major retailers' budgets and rapid SMB adoption, and earning near-universal executive backing, so if your strategy ignores location data, you're practically being left off the map.
Retail & Offline Attribution
- 176% of people who search on their smartphones for something nearby visit a business within a day
- 228% of nearby searches result in a purchase
- 3Location-based mobile coupons have a redemption rate of 10-12%
- 478% of local mobile searches result in an offline purchase
- 5Retailers using location-based marketing see a 14% lift in store visitation
- 653% of shoppers visit a retailer after receiving a location-based message
- 773% of consumers say they use their phone in-store to look up product information
- 8Drive-to-store campaigns reduce cost-per-visit (CPV) by 40%
- 967% of consumers admit to "showrooming" (checking items in-store then buying online)
- 1088% of consumers trust online reviews as much as personal recommendations for local businesses
- 1151% of smartphone users have discovered a new company or product when conducting a search on their smartphone
- 12Local listings with photos receive 42% more requests for driving directions
- 1375% of consumers expect a consistent experience across physical and digital channels (omnichannel)
- 14Stores with active proximity marketing programs see a 9% increase in basket size
- 1532% of consumers changed their mind about which retailer to visit after checking a location-based mobile ad
- 1690% of retail sales still happen in physical stores making location data crucial for attribution
- 1735% of shoppers use their mobile devices to compare prices while in a physical store
- 18Using OOH (Out of Home) ads connected to mobile location data increases store visits by 17%
- 19BOPIS (Buy Online Pickup In Store) adoption, driven by location ease, increased by 259% during the pandemic
- 2074% of consumers are more likely to visit a store if they find accurate local inventory information online
Interpretation
Think of location-based marketing as the digital breadcrumb trail that actually gets customers through your door: about 76% of smartphone users who search nearby visit a business within a day and roughly 78% of local mobile searches lead to an offline purchase, drive-to-store tactics can cut cost-per-visit by around 40%, mobile coupons redeem at 10 to 12 percent while proximity programs boost basket size by about nine percent, and with 73% of shoppers consulting their phones in-store, 88% trusting online reviews, and 75% expecting a seamless omnichannel experience, retailers who ignore location data do so at their own peril.
Technology & Geofencing
- 1Geofencing is used by 92% of smartphones
- 2The number of proximity sensors deployed globally is expected to hit 400 million by 2024
- 350% of brands use geofencing to target customers near competitor locations
- 4Beacon-triggered messages lead to a 73% increase in likelihood to purchase
- 5Geofencing click-through rates are 15x higher than standard push notifications
- 671% of retailers have invested in beacon technologies to track customers in-store
- 7Bluetooth Low Energy (BLE) beacon shipments are expected to reach 565 million units annually by 2024
- 839% of marketers use polygon data for more precise location targeting than a standard radius
- 960% of the top 100 retailers in the US use geofencing in their mobile apps
- 10WiFi-based location marketing provides 5-15 meters of accuracy for indoor targeting
- 11GPS technology is the most used location technology among marketers at 88%
- 1229% of brands are experimenting with Augmented Reality (AR) location-based experiences
- 13Geotargeting accounts for 30% of all programmatic ad buying
- 1452% of apps use background location services to trigger engagement
- 15NFC (Near Field Communication) usage for proximity marketing grew by 17% last year
- 16Using weather API data in conjunction with geofencing increases ad relevance by 45%
- 17The adoption of 5G is expected to improve location data accuracy to within 1 meter
- 18Reverse geocoding usage has increased by 20% by logistics and delivery apps for marketing
- 19In-app beacon integration retention rates are 30% higher than non-beacon apps
- 20Interactive maps within ads increase engagement time by 15%
Interpretation
Taken together, these statistics map a clear route to customers' wallets: with geofencing on 92% of smartphones, hundreds of millions of proximity sensors and BLE beacons coming online, and proximity tactics producing outsized results such as beacon-triggered lifts in purchase likelihood of 73% and geofencing click-through rates fifteen times higher than standard pushes, brands that combine precise indoor tools like WiFi and polygon targeting with NFC, AR, weather-aware geofencing and soon one-meter 5G accuracy will convert more often and leave fewer customers to competitors who treat location as optional.
