The terms location-based services (LBS), location-based advertising and location-based marketing are closely related. They refer to all mobile functions that incorporate the user’s location in order to display selected, relevant information or ads on the user’s device. For example, users of a shopping center app can be suggested specific stores in their vicinity based on their preferences. These stores could also send offers or discount codes to the customer’s smartphone when they walk past them.
All parties benefit from this type of marketing if done correctly: The customer receives information and coupons that are useful to him. The store operator can acquire new customers or strengthen the loyalty of regular customers. Location-based marketing is suitable for the entire retail sector, for example in shopping centers, trade fairs, airports, train stations, etc. The operators of the location can also use the functions for useful, advertising-free messages, such as current travel information.