O2 has launched a six-month pilot of location-based mobile marketing, in partnership with Placecast.
The network provider said it was the first to provide the geographic marketing service.
Customers of O2 can opt into the service, by registering on o2more.co.uk, to receive relevant marketing messages from coffee chain Starbucks and cosmetics brand L’Oréal, dependent on their age, gender, interests and location. The service works on any mobile phone and does not require an app to be downloaded.
The service uses geo-fencing technology called ShopAlerts from Placecast, a US location-based marketing solutions provider. Placecast’s customers have included retailers such as North Face and American Eagle Outfitters.
Shaun Gregory, managing director of O2 Media, said: “The market potential here is huge – it has already had massive success in the USA.
“It fuels a growing expectation among consumers for personalised advertising via their mobile phones.”
When registered O2 More users enter an geo-fenced area owned by Starbucks or L’Oréal, they will receive promotions via SMS, such as discounts on a drink at a nearby Starbucks branch, or an offer to buy one L’Oréal beauty product get one free at Superdrug.
O2 said that users will only receive a maximum of one SMS or MMS a day from O2 More, and they can opt out of the service at any time. The service is also not available to customers aged under 16.