Do you allow Facebook, Instagram, Twitter, and other websites and social networking sites to access your location? We give away our location because we want to share it with our friends and family for many different reasons. Companies say they do not share user location with advertisers. But every social networking application is using the location to help advertisers target potential customers because apps want to make money on mobile.

Location based mobile marketing requires access to the internet and GPS services. Every smartphone owner is a potential customer for location based mobile marketing. Imagine you are shopping at a mall or passing by a shopping center and you receive an email regarding 40% off on Zara clothes. The chances of visiting Zara is high when you are in the mall than when you are at home. Location based advertising is good at targeting potential customers.
User needs differ based on where they are and when they use their device. Location based marketing is used to share specific content based on user location. Location based marketing is not only used for targeting potential customers. But it is also used for insights, segmentation, analytics, and to understand if the advertisement drove people to the physical location. It is about understanding better about you and decide what advertising to show you.
How is it measured?
Location based advertising is measured using customer traffic data. By comparing the customer traffic before and after the advertising. Apple i phones have IDFA (Identifier for the Advertiser on i phones) and Android has Android Advertising IDs for tracking ads. When a user takes action, like clicking on an ad, websites will pass IDFA or Android IDs with the information of consumer action to advertisers. Social networks do not share IDs with advertisers but allow them to target specific IDs.
Example
Starbucks used location based advertising in the USA. They tracked user location and device IDs and then pushed targeted ads to the consumer. The metric to measure the success rate was how many people walked into a Starbucks store after seeing the ad.

According to Starbucks, the likelihood of a person entering a store increased by 100% after seeing a location-based ad.
Privacy
The disadvantage of using location based ads is its privacy issues. Marketers should respect users privacy and use location only if they have user consent. Social networks track users locations to provide a personalized experience but apps should draw a fine line between personalizing and privacy. Apps are tracking location even when the user is not using the app. Should the app makers know where we go, where we eat, and where we work?
References
Dhar, S., & Varshney, U. (2011). Challenges and Business Models for Mobile Location-based Services and Advertising. Communications Of The ACM, 54(5), 121-129. doi:10.1145/1941487.1941515
Forbes Agency Council. (2017). 15 Things You Should Know About Location-Based Advertising. Retrieved September 09, 2018, from https://www.forbes.com/sites/forbesagencycouncil/2017/11/22/15-things-you-should-know-about-location-based-advertising/#621e955c1e62
Nichols, J. (2017). Mobile Tutorial Series -What is an IDFA or Apple Identifier for Advertisers? Retrieved September 09, 2018, from https://www.singular.net/mobile-tutorial-series-idfa-apple-identifier-advertisers/
Pangburn, D. (2017). How-And Why-Apple, Google, And Facebook Follow You Around In Real Life. Retrieved September 09, 2018, from https://www.fastcompany.com/40477441/facebook-google-apple-know-where-you-are
Simpson, J. (2018, August 21). What is location-based advertising & why is it the next big thing? Retrieved September 09, 2018, from https://econsultancy.com/what-is-location-based-advertising-why-is-it-the-next-big-thing/



