Mobile Context and Location Services are becoming highly relevant today due to the widespread ownership of smart mobile devices which allow information (sponsored or otherwise) to be designed and delivered to people based on their location information, their social profiles, their spending patterns, their navigation history and their online behaviour such as their 'likes', browsing patterns and their 'followings'.
According to Juniper Research, a provider of research and analytical services, the Mobile Context and Location Services market is set to grow almost four-folds in the next four years from USD12.2 billion in 2014 to USD43.3bn by 2019. Juniper Research said that 70% of this revenue will be coming from applications that are supported by highly targeted and contextually aware advertisements. The huge revenue in this segment is driven partly by the increase in the mobile advertisement market especially with the ability of publishers and content providers to push rich mobile video ads which are engaging, relevant to the viewer and compelling to the younger and information-hungry consumers.
These findings, which are reported in Juniper Research's latest white paper, the Mobile Context & Location Services: Navigation, Tracking, Social & Local Search 2014-2019 are accompanied by other insights including social apps and local search apps being the top two app categories which are highest in terms of revenue generated from context aware ads; and mobile web search generating one of the highest revenues for context aware ads for non-app category. Juniper Research also said that the demand for in-app purchase will dominate the app market, as customers prefer cheaper options to access mobile applications while developers leverage the Lifetime Value model to monetize their apps.
