The big buzz coming out of this year’s SXSW Interactive conference was on location-based services, and it wasn’t focused merely on the big players, Foursquare and Gowalla. Instead, the buzz surrounding location marketing is about how every website will soon have the ability to know exactly where you are and how this could be huge for the industry at large.
Borrel forecasts that location-based mobile spending will hit $4 billion in 2015, more than 11 times the $34 million spent last year. Google will soon roll out new types of location-based mobile ads that can navigate consumers toward a store, Ad Age reports. At the same time, Facebook is preparing to add a location-based feature next month. About 100 million Facebook users access the social network from their phones, according to Ad Age.
With all this emphasis on location-based marketing, there is sure to be some blurring of the lines between traditional and digital ad budgets. Analysts expect money formerly spent on newspaper classifieds, direct mail, and the Yellow Pages to flow into mobile, along with money earmarked for interactive advertising.