Smartphones and GPS devices are changing our lives drastically. Apps and services are growing so tremendously that you could be next door to the place you’re searching for and not know about it. You have to use the maps and navigation apps that are provided for free on your smartphone, just the way you automatically reach for the calculator to do even a simple calculation.
You would think then that with location based services (LBS) becoming a core feature in a majority of smartphones, and companies like Apple (News - Alert), Google and Nokia, embedding maps on their respective platforms, LBS would generate a growing revenue for providers of those services.
Strangely, even with over 640 million users of mobile maps globally, these services are not directly contributing to the coffers of such service providers, primarily because business models for LBS are shifting to freemium,according to the Strategy Analytics Wireless Media (News - Alert) Strategies report.
Hence, providers of those services are looking for ways to generate revenue through a combination of advertising and additional premium content. Projections are that location-based search advertising will more than compensate by accounting for just over half of revenues by 2017.
Location-based ads can turn out to be very profitable because they’re more targeted. This means that just when consumers are searching for particular products and services, providers can use smartphones to deliver tailored, local ads relevant to the search.
There seems to be no doubt that this could prove to be rather a rather compelling opportunity for local business, noted David MacQueen, director of wireless media strategies service at Strategy Analytics (News - Alert).
The potential of location-based ads is immense and service providers could strike gold if they play their cards well.
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