Location Marketing

November 15, 2001

The technology is pretty much there, and the prices, as always, are rapidly falling. What technology? Technology that lets operators of mobile phone systems track your location anytime your cell phone is turned on. And following the horrible events of 9/11/01, the government is exceedingly interested in having access to this kind of information. So we predict that cellular phone companies will soon have in place and operating the capacity to know where each of their phones is at any moment (perhaps whether turned on or not).

Once a technology is in place, you can count on marketing pros to want to use it. Tremendous amounts of money are at stake here. Imagine the savings to a direct marketing campaign if expensive flyers can be mailed only to those who pass by a given store on a regular basis. And it could get worse (or better depending on your point of view). You're driving along happily on a hot summer day when your cell phone rings. You answer it and an automatic voice begins its pitch, "Are you thirsty? Sure is hot out there. 20 ounce icy drinks two blocks up ahead on your right for only ..."

For safety reasons, expect laws and regulations soon. For national security reasons, expect some form of this technology to be mandated. And privacy advocates will find this intrusion exceedingly offensive. If you still don't care about this development, consider how valuable this kind of information would be to any stalker, and it seems most systems are to some degree vulnerable to hacking.

September 4, 2003 update

Thus far the cell phone advertising predicted above has failed to materialize. The proliferation of state and federal "do not call" lists since the writing above indicates that public hostility to telephone interruptions while driving would be substantial (although the medium would probably be effective).

Furthermore, recent studies have suggested that the risk of automobile accidents arising from telephone conversing and driving simultaneously approximates the risk of driving while moderately intoxicated. Perhaps fear of liability has prevented this advertising medium from taking off. However, the recent flurry of tort reform legislation limiting recoveries for personal injuries might just open the door by rendering potential cost to benefit analysis more calculable.