location based marketing - DOC

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location based marketing - DOC Powered By Docstoc
					       March 7, 2011
Authored by: Tiffney R. Perry
                                         Location based marketing and advertising.

                                              Before we can answer if LBA is an invasion of privacy, we must know what LBA is.

                                       Location Based Marketing and Advertising is referred to as LBA and is a form of advertising

                                       that uses the users tracking technology. The mobiles that download the apps uses the installed

                                       GPS device that can pin point a person’s location for just about anyone. Correspondent Spencer

                                       Michels reports that cell phones with GPS technology that track and share user location are

                                       raising concerns about privacy as they revolutionize the way people communicate.

                                              FCC told mobile Carriers after the 9/11 attack that they must make sure that the location

                                       of the phone can be traced. Kevin Bankston |Electronic Frontier Foundation states that

                                       broadcasting your location is troublesome. Once the information is published anyone can look at

                                       that information including rapist and thieves. Eric Blumberg CEO of Smarter Agent runs an app

                                       called Smarter Agent that allows a user to find homes for sale nearby or in other cities. Eric

                                       Blumberg states that “If you download an application and you're saying, I'm here, find me, you're

                                       asking to be found. So, what's the danger?”

                                              Attorney Kevin Bankston argues that “The danger is that the Companies can keep and

                                       then divulge location information to the government or to others”. With the rise in mobile GPS

                                       information, companies have to protect both personally identifiable information (PII) of
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                                       employees, customers, and partners, and create new policies for handling location-based

                                       information. According to Nielsen, 22.7% of all online time is spent social networking. With

                                       more people on social networks and more personal information available via those networks, the

                                       potential for exposure of that data is likely. (Social Media and Location-Based Technology Top
                                       List, 2010)

(With Location-Tracking Technology, Cell Users Paying Price of Privacy, 2010)

       Mobile messaging also plays an essential role in Location based services (LBS).

Messaging, especially SMS has been used in combination with various LBS applications, such as

location-based mobile advertising. SMS is still the main technology carrying mobile advertising /

marketing campaigns to mobile phones.

        An example of LBS applications using SMS is the delivery of mobile coupons or

discounts to mobile subscribers who are near to advertising restaurants, cafes, and movie

theatres. Singaporean mobile operator MobileOne carried out such an initiative in 2007 that

involved many local marketers, what was reported to be a huge success in terms of subscriber

acceptance. Companies offering location-based advertisement and marketing text messaging

include but not limited to The Coupons App, Centrl, Zhiing, BluePont, Loopt, Dodgeball, and

GeoMe. (Location-based service, 2011)

       In 2003 the Can Spam went into effect and was Public Law number 108-187. President

George W. Bush signed this act into law on December 16, 2003 and establishes the United States

first national standards for the sending of commercial e-mail and requires the Federal Trade

Commission (FTC) to enforce its provisions.

       With the passing of the Can Spam Act in 2003, it became illegal in the United States to

send any message to the end user without the end user specifically opting-in. As a result, there
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has been a focus on user-centric location-based services and applications which give the user

control of the experience, typically by opting in first via a website or mobile interface. (CAN-
SPAM Act of 2003, 2011)

       So is Location Based marketing an invasion of one’s privacy? That is a hit and go

subject, yes these companies know if you are in their location and automatically send you a deal

or a coupon. But they are not stocking you and following you around as to something that may

                                       occur on social networking. The mobile location based marketing is just that, a company that is

                                       trying to sell their product. If the user of the mobile has signed up to receive the advertisement

                                       then it’s a no lose situation. The user that sign’s up for the LBA, has to agree to the terms and

                                       conditions and a privacy policy is included in the terms as well.
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CAN-SPAM Act of 2003. (2011, 02 28). Retrieved 03 06, 2011, from Wikipedia:

Location-based service. (2011, 03 06). Retrieved 03 06, 2011, from Wikipedia:

Social Media and Location-Based Technology Top List. (2010, 11 30). Retrieved 03 04, 2011, from ScreenMedia daily:

With Location-Tracking Technology, Cell Users Paying Price of Privacy. (2010, 06 22). Retrieved 03 04, 2011, from etpbs:

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