“At the moment, mobile users frequently see irrelevant adverts which are infringing on their mobile experience,” she said. “Being able to target a user whilst they are out shopping versus at home has a greater impact.”
The ability to track customers on their smartphones in the vicinity of a store should help “bricks and mortar” retailers fend off the online threat in other ways too, says Dan Wagner, head of e-commerce and mobile payment firm Powa Technologies.
“Geolocation is what is going to transform the leverage that a physical retailer has versus an online retailer,” he said. “If I transmit my location to the retailer, they could say I have a store 300 yards away. You could drop by in half an hour and I’ll have your goods for you. Amazon can’t do that.”