The market for location based services is expected to hit the $10 billion mark by the end of 2016 despite of rising concerns over consumer privacy.
According to a new report released by research firm Strategy Analytics, consumer concerns over privacy will be sidelined as their need for location based services like maps and navigation rises, Los Angeles Times reports (opens in new tab).
“Consumers are increasingly demanding services such as search, maps or navigation, for which location information is either fundamental to or provides greater context, utility and therefore appeal,” the company said.
Location based services are not only a boon for consumers but also advertisers which get access to valuable consumer data for targeted advertisements.
Strategy Analysis believes that location based advertisements would account for more than 50 percent of the $10 billion market by 2016.
"For advertisers, location data provides opportunities for targeting and optimizing ads. Strategy Analytics sees strong evidence of consumer demand for LBS in line with rising Smartphone and data plan penetration” said Nitesh Patel, a senior analyst at the company.
The company concluded that privacy concerns like Apple and Google secretly storing user data will do nothing to impact the growth of the location based services market.