Because third party firms cannot access location information, location based advertising is not yet possible in the United States. Additionally, many privacy issues exist between mobile marketing and end-users. Many debates arise concerning the sharing of this information with various agencies, including both the government and law enforcement. The cell phone provider, or third party companies with business partnerships can possibly share this information without the consent of the consumer.
Additionally, many most Americans are oriented strictly to talking on their phones, while users in Japan, Sweden and elsewhere are more accustomed to accessing data and conducting transactions on their mobile devices. According to GartnerG2 research director Mike McGuire, “Not everybody’s ready yet.” “You’ll see people with their m-phone browsers who end up talking to an operator” (Wrolstad ¶ 10).
However, many companies, such as Coca Cola, Adidas, and Ford have been utilizing wireless web and short text messages to promote their products. Adam Zawel, director of wireless mobile enterprise and commerce at research firm the Yankee Group, claims “It’s a compelling idea because there’s the promise of one-to-one marketing unlike the PC (and the Internet) that’s shared by multiple individuals” (Iwatani ¶ 17).
Many advertisers are eager to use location services to alert users when passing a nearby store that might be of interest. While these services are likely in some form, cell phone carriers are reviewing all options cautiously. According to Allen Nogee, a senior analyst at Cahners In-Stat Group, companies are aware a user “may not want to see ads for McDonalds every time you pass by the golden arches. Carriers don't want to annoy users because it's so easy to switch providers” (Crouch ¶ 7).
According to Catherine McConville, sales director at SkyGo, a wireless advertising company based in Redwood City, California, the cell phone with a GPS system would allow for endless marketing opportunities. The GPS would know a consumer’s location and link the phone to ads from nearby retailers. McConville theorizes that a consumer can walk into a mall and get a message from a nearby store that is conducting a sale, persuading the user to browse items (“The Cell Phone as Marketing Tool” ¶ 14).
As the idea of a GPS chip embedded in all cell phones slowly moves closer to a possibility in the United States, issues of privacy concerns and the advantages to consumers and e-commerce marketers remains questionable. However, if marketed and strategized correctly, possibilities for such technology could change the use of cell phones significantly for users across the country.
Work Cited
Ads heading to cell phones, mobile devices. Yukari Iwatani. April 11, 2003. World Wide
Web. 8 Aug. 2007. <http://in.tech.yahoo.com/030411/137/23ahd.html>
The Cell Phone as Marketing Tool: Will Consumers Answer the Call? March 19, 2001.
World Wide Web. 8 Aug 2007. <http://knowledge.wharton.upenn.edu/article.cfm?articleid=326>
Will Big Brother Track You By Cell Phone? Cameron Crouch. April 18, 2001. World
Wide Web. 9 Aug. 2007 <http://pcworld.about.com/magazine/1909p034id55986.htm>
Wireless Marketing Platform Debuts. Jay Wrolstad. September 18, 2002. World Wide
Web. 8 Aug. 2007. <http://www.wirelessnewsfactor.com/perl/story/19437.html>