LBS revenues in Europe, North America to hit $6.9 billion in 2018: Berg

Location-based services (LBS) in Europe and North America will generate revenues of around €5 billion ($6.9 billion) in 2018, up from about €2 billion in 2013, according to new research from Berg Insight, but mobile operators will focus on growth in the enterprise and B2B sectors, having been sidelined by over-the-top (OTT) players in the consumer market.

According to Berg, revenues in Europe will rise from €735 million in 2013 to about €2.3 billion in 2018, while those in North America will grow from $1.8 billion to around $3.8 billion over the same period.

Berg reckons most of the growth will come from increasing ad revenues in the social networking and local search segments of the market.

Research indicates that about 50% of all mobile subscribers in Europe were frequent users of LBS at the end of 2013, while 60% of North American customers are now accessing LBS at least monthly.

“Advertising is the main source of revenues for most consumer oriented LBS,” said Andre Malm, a senior analyst with Berg, noting that an increase in the number of active users and usage of LBS has also driven revenue growth.

“Revenues are however far from evenly distributed as major players including Facebook [Menlo Park, CA, USA] and Google [Mountain View, CA, USA] with broad audiences have attracted the majority of ad spend,” added Malm.

Moreover, with OTT players now dominating the consumer market, mobile operators have begun exploring opportunities in the enterprise and B2B sectors, where LBS can be used to support asset tracking, fraud management, secure authentication and location-based advertising.

“Some mobile operators have also started to collect passive location information of subscribers for use in mobile analytics services,” said Mr Malm.

Berg Insight reckons anonymous bulk location data can be used to improve the performance of mobile networks and support operators’ internal marketing campaigns.

It also says that location analytics data is being adopted for a range of diverse purposes, including site selection in the retail industry, as well as for urban planning and traffic monitoring by public authorities and private companies.

ArticleTools

Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

 

Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...