That’s the location intelligence industry, which is resulting from the rapid dominance of location-aware mobile devices, the rapid emergence of massive sources of spatial (geographic oriented information, i.e. Google Maps), the rapid user adoption of location-based applications (i.e. iPhone Apps), and a significant amount of innovative thinking as to how to capitalize on these very fast paced trends.
There’s a lot of people building a lot of new businesses around these trends. And it’s happening extremely quickly:
- in a just-announced test of location based advertising in Finland, MacDonalds’ has reported that location-relevant mobile ads resulted in a 7.0% click-through rate. Of those who clicked through, 39% then used the click-to-navigate option to find the closest restaurant. These are significant numbers
- one if 4 American’s uses location based mobile services, and half of those who noticed an ad while using such services too some action
- there has been a 68% increase in the use of mobile mapping and direction services in Europe in ONE YEAR according to comScore
- MarketResearch.com predicts increases of 37% compound annual growth for mobile advertising and 65% for mobile commerce, influenced by the speed of adoption of location-based services
- Juniper Research suggests that location based service revenues will top $12.7 billion by 2014, up from $3 billion last year
- another survey by RCNOS suggested that the mobile locations technologies market will grow at annual compound rates of 20%, reaching $70 billion by 2013, which includes both consumer and business intelligence/application (survey, mapping etc) applications
- it’s estimated that 1 billion people will access social networks by 2014. Most of them will use some form of location based application as they do so.
- GPS-enabled mobile phone devices will dominate the technology space, comprising 66% of all GPS devices by 2013
This is pretty significant stuff. Actually, its more than significant – it’s huge. Location is set to lead to significant industry transformation; some pretty dramatic business model disruption (think real estate); changes in consumer behaviour (product promotion and uplift); new business models (mobile, text message based banking which starts out via a proximity relationship.). There’s a huge amount of velocity out there!
There are two angles to the emerging market: consumer (i.e. iPhone) driven applications which will involve marketing, branding, product promotion, customer loyalty, point-of-purchase and a huge variety of other opportunities. The second involves corporate applications such as risk-minimization (i.e. mortgage risk analysis based on spatial data).
Regardless of how you look at, the overall impact of location intelligence is going to be dramatic.
It’s even going to come to impact sports. Here’s a clip from a keynote I gave for 4,000 individuals as the recent National Recreation & Parks Association: “Location intelligence and the future of recreation,” and spoke about the concept of a location intelligence professional.
Last week, I did a keynote for DMTI Spatial, a leader in this emerging space, particularly in the corporate application world. He has an interesting blog post that summarizes some of the unique issues that go with this fast emerging trend.
Location is the new intelligence. And its’ happening faster than you think!
And an increasing number of my keynotes and clients are asking me to focus upon the business opportunities that are emerging in this world. Stay tuned.
- Location intelligence, financial industries and business model change
- Location intelligence and the conference industry
- Extract from Jim’s book, Ready, Set, Done: How to Innovate When Faster is the New Fast