It also bodes well for this newer alternative to get the industry's attention. If you think the higher levels of performance you're experiencing are more likely to come from digital advertising, don't rush into planning and see how far location-based advertising can do.

Mobile ads that target the user's location through the user's GPS locator, have the potential to display any product, such as a coupon for a restaurant near a bus stop while you're waiting for a bus; or a car dealership near you Store an arrival notification for a car of the make and model you've been looking for on a car research site. With location-based advertising, mobile app developers can customize the ads displayed based on a user's location; advertisers can also have their banner ads appear only to users close to their business location.

Newer research from the Mobile Marketing Association and Luth Research assesses the potential of this advertising market, and the results show that the market is very promising. According to the Mobile Marketing Association, one in four U.S. adults (26%) have used "maps, navigation, or some other mobile phone service that automatically determines their current location," and 10% use it at least weekly Use this function once. And of all consumers who use location-based services, half of consumers who use the service and also notice ads in them take some action.

Although this market may seem relatively small right now, the potential for growth is huge. Most cell phones (sold at least for the past few years) include GPS technology or similar programs that can determine the user's location. And Apple iPhone users may prefer to use mobile location services; according to the survey, 63% of iPhone users use location services on a weekly basis.

It is no wonder that Apple will launch the iAd platform to seize this opportunity. There has been speculation among many in the industry that Apple may launch its own mobile-targeted advertising product, as Apple acquired mobile advertising network Quattro Wireless earlier this year. The ads will only be combined with Apple products, such as iPhone apps. And, the company claims, the ads will be highly entertaining in order to increase their interactivity and click-through rate. And this targeting isn’t just based on location; interactions with iTunes and the Apple App Store will also help provide the data advertisers need to understand consumers’ media preferences to deliver more personalized ads to them .