Delivered on August 24, 2026
The Current State of the Location-Based Marketing Business After 15 Years: AI, Retail Media, and Global Market Changes
Speakers:
Asif Khan, Founder and Co-President, Location Based Marketing Association (LBMA)
Affiliation and position information is as of the time of distribution
Asif Khan, founder and co-chair of the Location Based Marketing Association (LBMA), returns after approximately four years. He will reflect on the evolution of the location-based business over more than 15 years, starting from the free Wi-Fi advertising business that was the origin of LBMA's founding. Furthermore, he will provide a broad overview of the latest trends, including AI-powered location data analysis, store opening predictions, advertising linked to inventory data, the rapidly growing retail media, privacy regulations in North America, and the use of location data in online sports betting. He will discuss the future development of LBMA, which is expanding into North America, Europe, and Asia, and the next possibilities for the location-based business.
＝＝＝＝
The Origins of the LBMA and the Background of the Location-Based Marketing Business
Azif Khan, founder and co-chair of the Location Marketing Association (LBMA), established the association in 2010, and it celebrated its 15th anniversary last year.
Prior to establishing the LBMA, Khan ran a startup called "VEX Wi-Fi" that provided free Wi-Fi in restaurants, cafes, and other establishments. At the time, Wi-Fi was predominantly paid, but his company built a groundbreaking business model that offered free Wi-Fi in exchange for customers watching location-based local advertisements for a few seconds. When he sold the company in 2009, he was bound by a strict non-compete agreement with the buyer. However, anticipating the arrival of a major wave of location-based services such as Foursquare and Google Latitude, Khan established the LBMA as a non-profit industry association to circumvent legal restrictions. This activity, which began in Canada, quickly expanded to major cities around the world through platforms like the then-newly launched Twitter.
Dramatic Evolution of Location Data Analysis and Predictive Models Brought About by Generative AI
One of the biggest changes in recent years is the dramatic transformation of data analysis methods in the location-based business, driven by the rise of generative AI.
Aggregators possessing vast amounts of geofencing and POI data that are difficult to predict can now use AI to rapidly process data analysis that previously required enormous computing resources and manual work. For example, complex data extraction, such as determining the number of people who visited a specific store, can now be done instantly and inexpensively by AI. In the retail industry, predictive models that use AI to learn pedestrian flow, surrounding traffic, and the situation of competing stores to propose optimal locations for new stores are being put into practical use. In fact, McDonald's in North America is conducting experiments using AI to analyze surrounding traffic and the situation of other companies to predict sales during lunchtime.
Shift from "Current Location Tracking" to "Contextual Appeal Based on Situation"
Location-based marketing has shifted over the past 15 years from the simple method of "detecting the user's current location and sending a message" to an approach that emphasizes situation (context).
Instead of simply sending ads because someone is in an area, the trend is towards sophisticated appeals that combine user behavior, weather, and real-time store data. Marks & Spencer in the UK directly links digital out-of-home (DOOH) advertising around its stores with real-time in-store inventory data. This allows them to deliver highly accurate information to passersby in real time, such as, "We currently have 10 of this product in stock; come to the store now for a discount." AI plays a role in connecting these complex datasets and effectively managing smarter advertising campaigns.
The Current State of Privacy Regulations and Corporate Voluntary Measures in North America
While GDPR and AI laws are being established in Europe, federal-level privacy regulations in North America, particularly in the US and Canada, remain limited.
Although regulations exist at the state level, such as in California, no new federal regulatory legislation has been signed into law in the past year and a half. Given the political situation in the United States and the good relationship between the government and major tech companies, it is considered highly unlikely that strict federal regulations will be introduced in the next 18 to 24 months. Nevertheless, major brands and large retailers are taking an extremely cautious approach to privacy to avoid undermining consumer trust. Specifically, they are avoiding direct tracking of individuals and adopting targeted delivery methods based on anonymized common attributes (audiences) as the standard.
The Evolution of Retail Media and the Transformation of the Advertising Business Utilizing Physical Stores
Retail media networks (RMNs), operated by major retailers such as Kroger, Walmart, and Target, remain a very strong growth area.
A recent trend is the integration of in-store advertising space with out-of-store advertising (OOH), connected TV (CTV), television, and billboard advertising. For example, Best Buy displays advertisements for online-only services from other companies (such as cosmetics and eyewear brands) that they do not sell themselves. A model has been established where physical stores are utilized as a "digital outdoor advertising platform," and advertisements are sold to customers visiting the stores, thereby generating pure advertising revenue. Furthermore, effectiveness verification technology, which shows how delivered advertisements are actually linked to in-store purchasing activities and online transactions, has also improved significantly.
Geofencing and Regulatory Compliance in Online Sports Betting
Online sports betting, which is rapidly expanding its market in North America, is a major application of location information technology.
In the United States, the legality of gambling varies from state to state, so strict location identification is essential to block access from states where gambling is prohibited. In this area, location information security companies such as GeoComply provide regulatory technology that prevents fraudulent location information falsification and allows play only in permitted jurisdictions. In addition, efforts are being made to enhance the value of in-app advertisements by utilizing location information SDKs embedded in sports betting apps to analyze users' behavioral logs, such as their store visit history. Recently, the provision of limited betting services targeting only users physically present at stadiums has begun, using beacons and indoor positioning technology.
Summary
Asif Khan, founder of the Location Based Marketing Association (LBMA), demonstrates that location-based technology has expanded significantly over the past 15 years, expanding its applications to generative AI, retail media, and even the betting industry, which requires stringent legal requirements.
The evolution from simply "identifying a user's current location" to "creating a seamless, contextually relevant customer experience" is an essential standard for digital marketing going forward. Moving forward, LBMA will support global networking and further industry growth through meetups in Singapore and events in Asia and Europe.