Location-based services are expected to generate $4.4 billion in global revenue in 2012.
That number might surprise you, but it’s the figure reached by the new Visiongain study titled, “Location-Based Services 2012-2017: Monetizing Opportunities And Challenges,” which quantifies just how much of an impact location-based apps and ads will make in the coming years.
What rate of growth does Visiongain expect, and who are the most dominant players now? We take a week in our PYMNTS.com Data Point.
Foursquare Checks In At Number One
Foursquare reigns supreme amongst all location-based apps, with over 20 million registered users. About half of all Foursquare users live outside North America, and Foursquare’s demographic is essentially evenly split between males and females, according to the study. Visiongain expects Foursquare to reach 28 million users by the end of 2012, and 67 million users by 2017 for an annual compound growth rate of 35 percent.
As Location-Based Ads Rise …
The report focused specifically on African and Middle Eastern revenue generation, and found that location-based ads are currently total around $10 million. That number is projected to grow to $20 million in 2013, and to whopping $60 million by 2014. Overall, that’s an 83 percent year-over-year growth
… Traditional Advertising Falls
Traditional ads in the Middle East and Africa currently bring in $150 million a year, and that number is projected to double to $300 million by 2015. But as location-based ads start to gain more of a foothold in the market, that total will drop down to $200 million by 2017; a clear sign that mobile has infiltrated the market.
Read more location-based stats here.
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