Americans have long feared excessive government interference in personal matters, as is evidenced by the cultural phenomenon created by the Big Brother character portrayed in George Orwell’s 1984.  Paranoia has died down since the book’s World War II era publication, despite the fact that technology makes it easier than ever for anyone – not just the government – to keep a watchful eye on personal activities.

For years, tracing cookies have tracked the way users browse websites and have used that data to tailor content and advertisements to individual interests.  And now the mobile marketplace is opening new doors for companies looking to appeal directly to an individual customer.

Location-based advertising, LBA, traces a consumer’s location through his cell phone.  The company may then send an advertisement, via text message or mobile web, to the consumer based on his proximity to the business location.

For example, while a man walks to work, he passes a movie theater, a gym, and a coffee shop.  He might receive a message listing new releases, an advertisement boasting the benefits of a good workout, and a coupon for a discounted coffee.  He doesn’t even have a smart phone.  Does it sound surreal?

In fact many companies have already launched LBA campaigns abroad.  In September, T.G.I. Friday’s in the United Kingdom began targeting cell phone users within a certain distance of the restaurant with a pop-up similar to what we see while browsing the internet on a computer.  TeleNav, a US-based mobile GPS service, focuses on users who have already entered search queries and then directs them to clients’ front doors, sending coupons along the way.  

Thus far, LBA primarily targets consumers who have demonstrated some interest in the product being advertised (i.e. by searching for restaurants), but the technology is there to send the messages without any encouragement from the mobile user.

This highly personal marketing has great potential for businesses, but it remains to be seen how mobile users will react when their cell phones begin telling them where to eat lunch.