Location Based Advertising Statistics By Market Size And Facts

Introduction

Location Based Advertising Statistics: In the modern digital era advertising has become more personal and more targeted. One of the trends that fall within this paradigm is LBA, a.k.a. Location-Based Advertising. LBA offers ads based on geographic data to enhance the relevance and engagement of advertising based on an individual’s current location.

By the end of 2024, the LBA market will have grown with the help of advancements in technology and changes in consumer behavior.

In this article, we discuss the latest data, trends, and insights related to Location Based Advertising statistics in 2025.

Editor’s Choice

• According to Location-Based Advertising statistics, another key turning point in the growth of the LBA market is that spending increased from US$17.1 billion in 2017 to US$38.7 billion in 2022 after witnessing considerable growth.
• In 2021, spending on DOOH was US$11.61 billion, while traditional OOH was US$17.97 billion, for a total of US$29.58 billion.
• In 2024, spending on DOOH climbed to US$17.28 billion, and OOH remained at US$21.68 billion in total, giving us US$38.96 billion.
• Location Based Advertising statistics indicate that by 2029, spending will be DOOH at US$25.12 billion and traditional OOH at US$25.40 billion, totaling US$50.52 billion.
• Location-based spending shares: OOHs on Billboards: 22%, Street Furniture: 7%, Transit: 31%, and Place-Based: 40%.
• Mobile connections in the UK reached 71.8 million in 2024, reflecting a growth of 3.8% from 2021, with a predicted penetration rate of 95% for smartphones by 2025.
• The increasing adoption of AI and ML in location-based marketing is enabling hyper-responsive advertising and increasing targeting accuracy.
• Augmented reality (AR) is enhancing engagement by allowing customers to participate in real-time, interactive promotions based on their location.

Location-Based Advertising Spending Market Size

(Source: thebusinessresearchcompany.com)

• Location Based Advertising statistics reveal that the location-based advertising market has shown tremendous development over the past few years.
• Valued at about US$123.34 billion by 2024, it is expected to increase to approximately US$143.47 billion in 2025, with an excellent compound annual growth rate (CAGR) of 16.3%.
• There have been earlier advances under such heads as using location-based social platforms, smart city development, and IoT, increased consumer inclination toward personalized experiences, demand for precision advertising, and dynamic creativity optimization (DCO).
• In the years to come, the location advertising market will grow considerably. Its forecast by 2029 puts the market at US$263.45 billion, with a CAGR of 16.4%.
• Many things will make it possible, for example, the increasing penetration of mobile devices into the market, the acceptance of 5G technology, growing e-commerce, access to customer location data in real-time, and a better level of knowledge about consumer behavior.
• Key trends expected to shape the market during this period include advancements in geolocation technology, the integration of artificial intelligence (AI) and machine learning (ML), the rise of real-time bidding (RTB), augmented reality (AR) advertising, and the increasing use of location intelligence platforms.

Location-Based Advertising Spending

(Reference: wordstream.com)

• Location-based Advertising statistics surrounding LBA show an increase in the spending pattern on these ads throughout the years, without so much as a slip of a trend in the upward direction.
• Back in 2017, 17.1 billion dollars were spent on LBA by organizations, which was basically when LBA began to get considered for mass adoption.
• By 2018, the funding had increased to 22.1 billion dollars, with growing awareness of the potential of target advertising. 2019 followed on the heels of 2018, with even further upward spending growth: US$26.5 billion, and in 2020, US$31.1 billion.
• The benefits of such LBA growth have come from new mobile technologies, increasing penetration of smartphones into the market, and better analysis capabilities allowing advertisers to specify even more finely their targeting parameters.
• In 2021, LBA expenditure increased to US$35.5 billion following the widespread integration of location-based marketing into more advertising agendas. The momentum continued in 2022, with expenditure climbing to US$38.7 billion.
• This sustained increase indicates that the industry is becoming increasingly dependent on location data for developing customer engagement strategies, improving ad relevance, and guaranteeing a return on investment (ROI).
• The upward trend in the location-based advertising spending pattern has persisted over the years. It indicates a paradigm shift in advertising strategies towards personalized, data-driven strategies. The trend is projected to remain as long as technological advancement subsists since location intelligence is supposed to provide a greater perspective for the brand to exhibit something tangible for the audiences targeted.

Location Based Advertising Through Out-of-home Advertising

(Source: statista.com)

• Location Based Advertising statistics have shown that location-based advertising has been growing in the timeline of its rise, of which out-of-home (OOH) advertising comprises both digital out-of-home (DOOH) and traditional out-of-home advertising.
• In the years gone by, overall spending had a steady rise due to the growing adoption of digital advertising technology as well as consistent spending in traditional formats.
• Digital out-of-home advertising was US$11.61 billion, while traditional out-of-home advertising was US$17.97 billion, for a total of US$29.58 billion.
• In 2022, digital out-of-home continued its upward rally, with expenditures reaching US$13.42 billion; traditional OOH hit US$19.05 billion, giving an altogether total of US$32.47 billion.
• Location-based Advertising statistics state that the trend persisted upward in the current year, too, when digital OOH advertising grew to US$15.35 billion and traditional OOH to US$20.36 billion, making for a collective annual figure of US$35.71 billion. The spending for advertising on OOH media will reach a staggering US$17.28 billion by 2024, while traditional OOH will also make a commendable bid worth US$21.68 billion for a cumulative value of US$38.96 billion.
• If the trend continues, by 2025, digital OOH is predicted to reach US$19.08 billion and traditional OOH US$22.75 billion, giving a collective US$41.82 billion.
• Growth will mark 2026 as well, with digital OOH heading to US$20.82 billion and traditional OOH leading to US$23.68 billion, bringing their total to US$44.50 billion.
• In 2027, digital OOH is again projected to lead this sector with US$22.44 billion, while traditional OOH shall grow well to US$24.45 billion, accounting for US$46.90 billion.
• The trend continues beyond that into 2028, with digital OOH ad revenues likely to surpass US$23.89 billion and traditional OOH to reach US$25.03 billion for a total of US$48.93 billion.
• By 2029, digital out-of-home advertising expenditure is expected to have grown to US$25.12 billion, whereas traditional OOH will be worth US$25.40 billion, leading to a total of US$50.52 billion.
• The slow and steady growth of both digital and traditional forms of OOH advertising is evident from the data, with the growth of digital out-of-home advertising being faster than the others over the last couple of decades, courtesy of advanced technology that enables real-time targeting, combined advertising, and interactive advertising.
• There still exists an active space for traditional advertising, and digital formats keep gaining space, representing the transition toward the digital era of advertising.

Location Based Out-of-home Advertising Spending

(Reference: statista.com)

• Expenditure distribution concerning location-based OOH advertising emphasizes the levels at which various formats are being invested.
• Location Based Advertising statistics show that Billboards contribute 22% towards general expenditure for OOH advertising; nevertheless, they remain fitting as a medium that provides high visibility for broad reach.
• Billboards, whether static or digital, are found mostly in high-traffic areas, with their visibility being conducive to brands going for mass exposure.
• Street furniture, such as shelters, benches, and kiosks, consumes 7% of the expenditure. Even with a smaller share, this format effectively targets pedestrians and commuters in cities, providing very local and contextually relevant advertising.
• Transit advertising absorbs 31% of the spending, and it includes ads on buses, trains, taxis, and any other public transport system.
• This category benefits from hefty footfall in various urban centers daily, granting ad impressions repeatedly to commuters and travelers.
• Place-based holds the most significant 40%, meaning location-targeted ads in malls, airports, gyms, and entertainment venues are gaining increasing importance.
• This approach employs consumer behavior and movement patterns to ensure ads are shown at places where they are most likely to attract audiences with disparate characteristics.
• This varying distribution of spending among these categories shows the strategic distribution of resources within the OOH advertising sector, straddling mass visibility with very precise audience targeting.

Local Based Advertising Market Driver

• The rapid proliferation of mobile device usage will be a major driver of growth for the location-based advertising market.
• Continuous internet connectivity through mobile devices allows users instant access to information, news, and updates.
• Advertisements based on location can now be delivered via GPS technologies, targeting users with hyper-local and relevant ads that take into account a user’s real-time geographic location.
• Location Based Advertising statistics reveal that in February 2024, data from Uswitch Limited, a financial conduct authority from the UK, revealed that the number of mobile connections in the UK stood at 71.8 million.
• This was, therefore, a period of 3.8% increase or roughly 2.6 million additional connections compared to 2021.
• By the year 2025, the UK is expected to grow to a population of 68.3 million people, out of which approximately 95%-around 65 million people will become owners of smartphones.
• In conjunction with mobile device adoption, this situation forms the proverbial perfect storm for the growth of this market by allowing advertisers to reach consumers with personalized real-time marketing opportunities.

Challenges In Location-Based Marketing

• Location-based marketing (LBM) uses many data sources, and each of them has its challenges related to the integrity and authenticity of the records.
• One of the main factors related to the LBM is bringing in accurate, current location data; attaining such precision is not as easy. As these location data records may get old, proper updating needs to be done because tall buildings and dense tree cover can block signals from the atmosphere.
• Such things lead one to be inaccurately tracked, making it receive irrelevant marketing messages or talk intrusion. Some people switch off their location services or set them at low accuracy, which affects the reliability of data.
• The hybrid approach for companies is to complement GPS with other leading location-tracking technologies, including Wi-Fi triangulation and the cellular network. This will generate a more accurate and reliable tracking system. Another recommendation is the pre-validation of the location information with other relevant channels, such as GPS with other data sources, and conducting bounded audits.
• Most barriers remain in terms of privacy; it is one major concern in terms of location-based marketing. Most people are significantly distrustful of collecting personal data and how it will be used; thus, it evokes skepticism concerning the practices of LBM.
• Businesses need to be open about the collection and usage of such data to gain trust for such practices. An explanation of all the benefits but with the associated risks would further allay the user’s fears. Opt-in and opt-out solutions are the other moves that would show that the rights of the users are being respected,d thus reducing the perception of intrusive marketing.
• Most importantly, location data should be made aware to customers that it improves the customer experience by bringing personalized offers, location-specific discounts, and relevant suggestions available to them as part of the benefit.
• Since the collection and processing of personal data take place with location-based marketing, a business must follow various data protection laws to maintain compliance and consumer trust.
• Organisations must be aware of data privacy laws like the General Data Protection Regulation (GDPR) in the EU and similar laws in other regions. Such essential location data should be collected for marketing purposes only so that organizations remain in compliance; otherwise, too much data collected might raise eyebrows. Consent of the user before beginning to track and process location data must be sought according to the legal requirements and under ethical marketing practices.

Future Trends In Location-Based Marketing

• Location Based Advertising statistics reveal that many advancements loom, with more businesses adopting location-based marketing. Greater returns will be further expected with greater technological advancements shortly.
• AI and ML are destined to transform location-based marketing by analyzing massive volumes of data, finding patterns in customer behavior, and predicting purchase intent. The creation of hyper-personalized marketing experiences falls into the hands of AI and ML to achieve.
• A clothing store could use AI to determine when a customer enters a geofenced area. Using shopping history and behavioral data, it would send a push notification immediately, suggesting a jacket that complements a prior purchase. Targeting accuracy and conversion rates might be improved greatly with AI and ML in marketing.
• AR is changing consumer interaction via more interactive and immersive marketing channels. Rather than just starring in mundane digital ads, AR allows brands to execute location-based promotions engagingly.
• For example, as the user walks down a street, AR technology can allow stores to place virtual signs announcing special discounts above nearby restaurants or retail stores, customized according to the user’s past preferences. This degree of engagement encourages consumers to visit offline stores, explore local businesses, and capitalize on personalized discounts.
• Marketing experts suggest that location-based AR will vastly strengthen mobile marketing by opening up myriad different avenues for brands to reach their customers interestingly.

Conclusion

There has been a dramatic shift regarding advertising location-based advertising occurrence transformations- consumer-centric, relevant, and timely messages being delivered to the consumers. Currently, as per location-based advertising statistics, the LBA market is on the cusp of a new revolution-it is continuing toward the north on the sought-after path of upward momentum, thanks to technological advances and transformed consumer wants. Businesses looking to keep faith with the competition should seriously enter into LBA adoption to their marketing plans and thus alleviate any associated concerns of data accuracy and privacy.

Then they will be able to improve customer engagement, sales, and loyalty to the brand in a world where bonding among people is becoming increasingly narrow as well as the technology itself extends to everyone.

Maitrayee Dey

Maitrayee Dey has a background in Electrical Engineering and has worked in various technical roles before transitioning to writing. Specializing in technology and Artificial Intelligence, she has served as an Academic Research Analyst and Freelance Writer, particularly focusing on education and healthcare in Australia. Maitrayee's lifelong passions for writing and painting led her to pursue a full-time writing career. She is also the creator of a cooking YouTube channel, where she shares her culinary adventures. At Smartphone Thoughts, Maitrayee brings her expertise in technology to provide in-depth smartphone reviews and app-related statistics, making complex topics easy to understand for all readers.

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