In-Store Location Advertising Takes Shape as Start-ups Capture 10,000 Stores

Oyster Bay, New York - 03 Oct 2012

​The era of in-store advertising and coupons delivered through a phone is rapidly becoming a reality. With retailers increasingly looking to mobile to drive bricks & mortar sales, there has been a significant increase in the number of in-store apps, mapping, and indoor location technology deployments in 2012.

In the latest edition of ABI Research’s Location Technologies database forecasts, total indoor location technology installations are forecast to approach 10,000 stores by the end of 2012. This side of the business is dominated by shopkick at the moment (via Audio technology), but ABI Research has forecast Wi-Fi technologies to become the dominant technology by 2015, followed by Bluetooth, as Wi-Fi access point companies like Cisco and Motorola build out their indoor location offering and make it easier and cheaper for stores to do so.  In line with this, the total number of mapped buildings is forecast to reach 70,000 by the end of 2012, ballooning to over 500,000 by 2015.

Senior analyst Patrick Connolly said, “Looking across the different vertical markets covered in the database, ABI Research is seeing deployments in the stadium, museum, airport, and university segments, but most companies are now switching their focus to core retail areas such as food & grocery, DIY/Electronics, and shopping malls. We expect to see a number of other big announcements in 4Q12/1Q13 that will take this market into a new level of growth.”

The market is now rapidly moving beyond simple navigation and wayfinding. Companies are expanding their offerings to support customer analytics and ultimately hyperlocal advertising and couponing, as illustrated by the recent acquisitions of ThinkSmart Technologies and WiLocate by Cisco and Aisle 411.

Vice President and practice director, Dominique Bonte said, “Looking at company market shares for maps and indoor location deployments, we are seeing the order is shifting significantly each quarter as start-ups are now making the move to high volume contracts with major retailers. We believe that there is a great opportunity for a new star to emerge in this space.”

All ABI Research Indoor Location reports, competitive assessments, and databases are part of the Location Technologies Research Service.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

 

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