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Indoor location based search in the US poised for exponential growth

By: capturecode | Sep 8, 2014

Location based marketing is quickly gaining traction across business sectors in the world. The focus is on creating a personalized experience for the customers and finding innovative ways to engage and interact with them to gain an edge over the competition. Geo targeting and location based marketing (LBM) has changed how businesses operate today.

After LBM, businesses have further narrowed their target audience with indoor location-based marketing. According to a recent study by, this advertising market is set to grow by around 45% by 2018. That is not all – the indoor-LBM market is likely to be worth a whopping $3.9 billion by 2019.

Indoor location-based search – what exactly is it?

Geo targeting is finding a product or a service that a person is looking for in a specific location like a city, town or state. Indoor location-based marketing further narrows down that range and is used to track a product or service that a customer is looking for within a specific geographical area like a university campus or even a building. The location based search is limited to a specific range and depends only on WLAN and Wi-Fi networks, rather than GPS that location-based search uses.

One of the reasons for this is that GPS signals are often weak inside a building, which makes tracking an individual or a product inside a building with it difficult. That is why indoor location-based search uses LAN-based spatial technology to track objects and people, which is the key difference between this form of search and the wider location based search.

Major players leaning towards indoor LBS

Indoor location-based search is the latest trend in the world of digital marketing and it is gaining popularity very quickly. All major players in the US market such as Apple, Google, HERE, Micello and Point Inside have together covered over 25,000 venues for indoor LBS. The demand for this type of search is also growing, which is encouraging more and more businesses to adopt this technology. According to a report by MMW, the total number of venues in the US that will be covered by indoor LBS technology is going to go up to 200,000 by 2016.

Consumers drive use of indoor LBS

One of the key factors contributing to the growth of the indoor LBS market is the increased use of this technology by consumers. The survey also revealed that more than 80% of people in the US spend time indoors. Of all the mobile data generated in the country, 85% is from indoor locations. Consumers are now using indoor LBS in malls, university campuses, offices and even airports and parking spaces, owing to the growth in personal communication devices.

With industry giants attempting to match their indoor location based services to growing customers’ needs, LBM seems to be gaining momentum in the fascinating world of mobile and digital marketing.

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