Roughly $500 Billion in Consumer Spending Waiting to Be Influenced by Indoor Marketing

When we published our recent "Mapping the indoor marketing opportunity" report, we estimated that roughly $10 billion in spending would be impacted directly or indirectly indoor location technology and marketing. However the market is so young that it's difficult to make a forecast with any sort of precision. 

Given that analysts routinely inflate and overestimate the value of markets and the speed of their development I was somewhat nervous about this figure. However it turns out that $10 billion number may be quite conservative.

In that number we included software licensing revenue from indoor analytics. The consumer marketing side of the equation is much more vague given that indoor marketing is still mostly speculative. The models and behavior haven't yet shown up -- though they will. 


Source: Nielsen (advertising and audiences report) May 2014 

However, one clue to the fact that we may have grossly underestimated the value of "indoor marketing" comes from a Nielsen chart (above) estimating how much consumers spend on grocery, personal care and various sundries annually. The numbers are almost unbelievably large.

The total spent in the US on these categories comes to roughly $500 billion annually. If even a fraction of the value of these purchases can be influenced at/near the point of sale through indoor marketing we've got a massive market on our hands.

The total value of all digital media advertising in the US last year was approximately $43 billion, according to the IAB. If even 10% of the consumer spending mentioned by Nielsen above can be influenced by indoor marketing (in one form or another) we're talking about $50 billion worth of goods annually.