O2 Signs Up Starbucks And L'Oreal For Location-based Marketing

O2 has roped in Starbucks and L'Oréal to test its newly launched location based SMS and MMS advertising service.

The new service will allow partner companies to send advertisements as SMS and MMS messages to users of O2's network when they enter a particular location.

The marketing SMS and MMS will be only sent out those users who have willingly signed up for the O2 More service, under which, they give their personal information, such as age, gender and interests such as travel, books and food, in order to receive tailor-made offers.

O2's new service is based on geo-fencing technology developed by US firm Placecast, which allows specific geo-locations to be 'owned' by particular brands.

When a users enters an area which is 'owned' by a particular brand, then an automatically generated SMS or MMS is sent to the user's mobile phone.

According to the UK network carrier, every customer will only receive one such SMS or MMS per day.