In a nutshell, location based services enable companies and organizations to send messages or deliver advertisements to all mobile users in a given geographic location.

Depending on the system used, your location is tracked by the GPS chip in your phone, by measuring your proximity to the nearest cell phone tower or via Bluetooth.

Like other forms of mobile marketing, the user typically has to opt-in to receive these notifications.

Let’s look at a few practical examples of how location-based marketing is used….

• Municipalities in some communities use this technology to broadcast emergency messages, such as reaching all residents who live in an area that needs to be evacuated.

• Tourism Departments can enable visitors to opt-in to receive informative text messages when they are near a special or historical landmark.

• Consumers who opt into ShopAlerts by AT&T will receive coupons and special offers via their mobile phones when they are near a participating store or brand.

This technology is very complex, this post only aims to capture it in a nutshell.