What is location marketing?

Location-based alerts are usually delivered to smartphones via SMS messages. The alert can contain information about a daily offer from a local business or a shopping incentive such as a discount coupon code.

For location-based marketing, the end-user must agree. The opt-in process usually takes place when the end-user downloads the mobile app and responds with an "ok" to the app's request to use the device's current location. The technology behind LBM takes advantage of geofencing, a software feature that uses triggers to send an alert when a device crosses a predefined geographical boundary. The goal of LBM, as with all mobile marketing initiatives, is to capture the end user's attention and turn them into a customer.  

Proponents of location-based advertising are hailing it as a way to bridge the gap between online and physical shopping experiences and encourage impulse buying. Skeptics question whether LBM will lead to consumer burnout and whether it will violate consumer privacy if the data collected through LBM is not properly used, shared, protected and stored. Companies participating in LBM must take measures to protect customer data through strict opt-in policies and security safeguards.