Market Trends of Africa Location-Based Service Industry
Location-based Advertising is Analyzed to Grow at a Significant Rate
- Location data is becoming an increasingly vital asset across various industries, where consumers are reached out based on location data to create personalized advertising. For instance, geofencing is emerging as a popular marketing strategy in the retail industry to drive customer loyalty through mobile apps. Businesses can present promotions and advertisements based on where their consumers are geographically located.
- Further, with the rapid digitalization across various industries and increasing smartphone penetration in African countries such as Nigeria and South Africa, businesses recognize the value of location-based services to advance their advertising strategy and reach out to customers more effectively. Further, with location-based services, consumers can receive real-time push notifications, alerts, and emails at the right time, thus driving the adoption among end-user industries.
- For instance, according to the data from GSMA Intelligence, there were 112.7 million cellular mobile connections in South Africa at the start of 2023. GSMA Intelligence's numbers show that mobile connections in South Africa were equivalent to 187.4% of the total population in January 2023. The number of mobile connections in South Africa increased by 4.0 million (+3.7%) between 2022 and 2023. Such factors further propel the growth of location-based advertising in the region.
- Furthermore, location-based advertising is becoming increasingly influential throughout a consumer's journey, from purchase to engagement and retention, thus acting as a driving factor for adopting location-based advertising in various retail and automobile industries. The retail segment is analyzed to hold a significant share in location-based advertising, with retailers across the African region using location-based advertising to better leverage their wireless networks to engage with always-connected customers and improve customer experience to strengthen the retail brand and improve ROI.
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South Africa is Anticipated to Hold Significant Market Share
- South Africa's location-based services market has been analyzed to gain significant traction in the past few years owing to the growing demand for location-based services among various end-user industries coupled with a significant presence of major market vendors in the country. In addition, location-based services are gaining traction for navigation, personal safety, and entertainment applications across the country.
- The use of social networking sites such as Facebook, Twitter, and Instagram on mobile platforms is increasing rapidly across the country. Simultaneously, the use of location-based service applications on smartphones is also witnessing significant growth. Therefore, most location-based service providers are developing applications integrating location-enabled search with social networking sites.
- Further, the high penetration of social media platforms in the country further offers growth in demand for location-based services for social networking and entertainment segments. For instance, according to the data from NapoleonCat, as of May 2023, Facebook was the most popular social media platform in South Africa, with 30.7 million users. Moreover, Messenger and LinkedIn followed with almost 27.4 million and 11.58 million users, respectively.
- Moreover, the transportation and logistics sector is analyzed to boost the adoption of location-based services in the country over the forecast period. Using location-based services that monitor the movement of commuters, vehicles, and service seekers can provide better locations and accurate estimated arrival times in real time. Along with the significant efforts made by South Africa to attain smooth transportation goals coupled with boosting the logistics sector, this is anticipated to develop a substantial market base.
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