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Soon to Your AT&T Cell Phone: 'Free Kibble on Aisle 6'

Matt Hamblen | March 4, 2011
AT&T customers in four U.S. cities will soon be able to receive mobile coupon alerts and other marketing information from nearby stores, based on cellular location technology.

FRAMINGHAM, 28 FEBRUARY 2011 - AT&T customers in four U.S. cities will soon be able to receive mobile coupon alerts and other marketing information from nearby stores, based on cellular location technology.

 

In mid-March, AT&T will begin providing text (SMS) and multi-media message (MMS) alerts, retail coupons and rewards to the smartphones and cell phones of AT&T customers when they are near a participating store, based on geo-location data provided from nearby cell towers, the carrier announced Monday.

The service, called ShopAlerts by AT&T, is set to launch in New York, Los Angeles, Chicago and San Francisco. AT&T will be the first U.S. wireless carrier to offer such a large-scale mobile marketing campaign based on location technology.

Customers in the AT&T program can expect to receive SMS and MMS offers from a host of initial ShopAlerts sponsors, including Hewlett-Packard (HPQ), Kmart (SHLD), JetBlue (JBLU), SC Johnson, Kibbles 'n Bits, Nature's Recipe and the National Milk Mustache "Got Milk?" campaign.

The offers could be a coupon, reward, or an alert of some kind, AT&T said. The offers could be enhanced with information on weather, traffic and the local shopping area.

AT&T will not use GPS data to find a user's location, and instead will rely on nearby cell towers to create a geo-fence (a virtual perimeter) around a store, event or area of shops and restaurants to deliver location-specific messages, a spokesman said.

Such services have been envisioned for years but have been slow to catch on at a large scale in the U.S. for various reasons, including customer acceptance and the sheer network logistics involved.

Since customers must opt-in to be part of the program, AT&T might not hear many of the concerns over location privacy that have haunted other services involving geo-mapping and GPS. For example, some consumers groups, especially in Europe, have attacked Google over its Google Maps Street View technology, which is used to show panoramic photos of streets, houses and buildings when users zoom into satellite maps from a computer.

One analyst, Jack Gold of J. Gold Associates, said he expects some customers will want the retail alerts and will opt-in if the offers are worthwhile. But the service could also become annoying, he said.

"Imagine being signed up and driving down the street and having your phone buzz you every two blocks," he said. "I think this may be a hard sell for many users who are already inundated with too much stuff coming at them from Facebook , texts etc. ... Unless it offers real value, I think most consumers will just opt out."

 

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