Pros & Cons of Location-based advertising (LBA)

Advantages of LBA: Reach, Relevance, and Results

1. Reach specific targeted audience
   Marketers can create campaigns aimed at more specific age, gender, income, and lifestyle segments.


2. Tailor-made information provided
   Gives consumers control on what, when, where, and how customers receive ads, more relevant information, personalized message, and targeted offer are provided to customers.


3. Widely application
   It not only used principally for advertising, but also doubled as a means of researching consumers. Consumers are constantly providing information on their behavior through mobile internet activity.

Limitation of of LBA: Privacy and Perception of Spam

1. Concerned for privacy
   Many consumers are concerned for their privacy and risk of being monitored without being aware of it.


2. Perceived as a spam
   Consumers can easily perceive LBA as spam if done inappropriately. Spam is what the consumer perceives as an unwanted marketing or message they did not directly opt-in to receive.

Source:
http://en.wikipedia.org/wiki/Location-based_advertising

What is Location-based Services??

Location-based services (LBS) are services that exploit knowledge about where a mobile device user is located. It is divided into 2 kinds: push and pull approach. Nowadays, it is common applied in advertising, called location-based advertising (LBA). It uses location-tracking technology in mobile network to target customer with location-specific advertising on their mobile devices.

The LBA push approach delivers information (send ads) to the user, determined by the device’s location. In addition, within the push approach, there are also two types of advertising; not requested and indirectly requested services. A not requested service, advertisers would send ads to users until users request not to send anymore. In contrast, an indirectly requested service, advertisers must receive permission from users before sending the ads to them.

The LBA pull approach, occurs when users request some information directly. In other words, users are seeking information (pulling) rather than information seeking them (pushing).

If you want to know more "Location-based advertising", please enjoy the following video explained by Professor Andrew Stephen.

Source:
http://www.geo.unizh.ch/publications/cartouche/lbs_lecturenotes_
steinigeretal2006.pdf
http://www.youtube.com/watch?v=QFYotXk7e7Q&feature=related