Geomarketing Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

(MENAFN- GlobeNewsWire - Nasdaq) New York, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Geomarketing market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" -
The Geomarketing Market size is expected to grow from USD 14.35 billion in 2023 to USD 36.47 billion by 2028, at a CAGR of 20.50% during the forecast period (2023-2028).
Increasing adoption of digital mapping by many businesses, technological advancement in location-based analytics, and the increasing need to analyze the considerable business data to draw spatial reference insights to supply the right product to the right consumer at the right time can surge a company's revenue are some of the primary factors boosting geomarketing market.
Key Highlights
Increasing establishments of multinational companies in different geographical locations with various cultural, demographic, food, and linguistics preference have forced companies to opt for geomarketing software that would provide a series of data and information that can be employed to identify and convert potential customers to actual customers through marketing strategy. Geomarketing provides a way to meet the challenges faced by Communication Service Providers.
The factors driving the geomarketing market are the increased demand for advanced digital marketing technologies, the adoption of big data platforms, and ongoing innovation in business intelligence solutions. Adopting advanced technologies (IoT, advanced analytics, edge computing, and blockchain) has increased device connectivity. With the rise in digital transformations, organizations have started moving toward digital marketing tools by incorporating the location intelligence of the target customers rather than traditional tools, as these offer more affordability and customer engagement.
For instance, Dänisches Bettenlager, a Denmark-based home décor retailer, is currently utilizing the geomarketing solution of WIGeoGIS for planning and optimizing brochure advertising. It also aims to reduce the daily traveling time of sales managers through a new and optimized sales structure.
Location-based intelligence services are a solution that utilizes the device's geographical location to provide information to the user. The technology has gained considerable significance and is becoming an integral part of organizations due to the numerous benefits offered by location-based Intelligence solutions, including store locators, proximity-based marketing, real-time information, weather reports, mobile workforce management, roadside assistance, traffic updates, and fraud prevention. The rise in GPS-enabled precision applications, such as farming, logistics, and automotive, has created a high demand for location-based solutions to enhance business revenue.
Many countries' lack of uniform regulatory standards has raised customer data privacy concerns. Further, security concerns as applications and networks are under persistent security threats such as malicious code and service denial can lead to data loss and leakage, hampering the market's growth in the future.
The outbreak of COVID-19 led to the large-scale transfer of sales from physical stores to digital stores, leading to large-scale data usage by consumers of various sectors. Organizations were keeping up with their technology enhancement and investment to engage customers in times of panic buying and stay-at-home guidelines at the global level. Organizations also reduced productivity declines, with businesses providing all the essential infrastructure and technology support to their customers by adopting advertising and marketing strategies through digital media. Such factors have led organizations to adopt more geomarketing solutions, leading to market growth. With the rapid adoption of digital geomarketing technology, advanced marketing analytics tools drive market growth in the post-pandemic scenario.
Geomarketing Market Trends
Increasing Demand for Location-based Intelligence to Enhance the Business Revenue Drives the Market Growth
Technological advancement in smart devices such as smartphones, smart wearables, laptops, wireless connectivity, the Internet of Things, and cloud computing has increased the traffic and driven the demand for analytical services due to their ability to analyze and deliver real-time geo-data. According to Cisco Systems, the number of mobile subscriptions globally will grow to 5.7 billion by 2023. The compound annual growth rate is 2% for the whole period from 2018 to 2023.
Advancements in digitization fuel the need for location-based services owing to their potential to deliver tailored marketing strategy services, resulting in new growth opportunities for service providers adopting such services.
Moreover, increasing brand dependence on location-based service providers to determine customers' requirements and verify customers' needs and that their offerings are on the same level to remain one step ahead of competitors has driven the market's growth. Companies also utilize location-based technology, advanced analytics, and automation to create a highly personalized customer experience and build brand loyalty to reduce churn rates due to ongoing competition.
Furthermore, location-based services have gained significant attention across various industrial sectors such as government authorities, telecommunications, transportation, and retailers. They have empowered players to offer promotional services based on customers' lifestyles and proximity. For instance, Uber, an American ride-hailing company offering services, works on customers' and drivers' location information through smartphones. Location features help the company to improve its services, including pickups, navigation, customer support, and promotional services. Thus, it is expected that many businesses will gain good insights through location-based services and drive the market in the future.
North America is Expected to Become the Largest Market
North America is expected to dominate the market studied over the forecast period, mainly due to the increasing IT spending, acceptance of innovative and advanced technologies, and many significant market vendors in the region. Moreover, the high adoption of IoT technologies significantly contributes to the regional market's growth. The US is expected to be the dominating country-level Market in North America.
The latest 5G-enabled smartphones with high-speed data and location accuracy are likely to be the major factors fueling the demand for geomarketing. It is anticipated to grow as it allows businesses to target individual clients by customizing and distributing notifications and advertisements in real-time.
An increase in Investments to develop geomarketing software tools that use location-based information to help companies devise their marketing campaigns and strategies helps drive the demand for the geomarketing market in this region as many prominent players, such as IBM, Oracle, Microsoft, etc., are present. It also helps end-user organizations organize and display data and use digital mapping to analyze this data by a particular physical location. For Instance, CAPcargo uses the PTV xServers developer components for geographical, logistical, and marketing functions. Routes can be visualized on geographic maps, and distance and driving times or toll costs can be calculated.
Moreover, changing technology, regulations, and customer expectations are transforming financial services pushing financial institutions to be more agile and open while maintaining tight security and data privacy. According to Cisco Systems, By the end of 2023, North America will have 329 million mobile users. Around 88% of the regional population own a smartphone, so financial institutions have vast opportunities to capitalize by delivering products and services tailored to customers based on location, leading to the collaboration of many BFSI organizations with IT providers.
For instance, Mastercard collaborated with Carto, a software company, to develop packaged mapping solution, Mastercard Retail Location Insights, which is a multi-sectoral and very flexible solution that allows the analysis of critical variables for accurate decision-making related to the assessment of territories, properties and other aspects of geolocation, which are essential for business success.
Geomarketing Industry Overview
The geomarketing market is highly fragmented, with the presence of major players like Microsoft Corporation, IBM Corporation, Oracle Corporation, Google LLC, and Cisco Systems Inc. Players in the market are adopting strategies such as partnerships, innovations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.
In November 2022, IBM Business Analytics Enterprise offered a way to integrate analytics technologies in a single perspective, independent of vendor or data location. IBM has released advanced tools to assist organizations in breaking down data and analytics silos, allowing them to make data-driven choices fast and handle unpredictable challenges. IBM Business Analytics Enterprise is a business intelligence planning, budgeting, reporting, forecasting, and dashboarding package that gives customers a comprehensive view of data sources throughout their organization.
In October 2022, Microsoft Advertising introduced a solution within Google Import to make it easier to duplicate efforts across platforms when utilizing Google AdWords' Performance Max campaigns. This is now generally accessible and lets users import their Performance Max campaigns into Microsoft as Smart Shopping Campaigns and Local Inventory Advertising.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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