In the October 2008 issue of Inc. Magazine wrote an article entitled "We See You - Want A List of Nearby Stores?" which deals with a new kind of Targeted Marketing.  It discusses the ability for advertisers to locate a cell phone user based on the GPS ability built into the user's cell phone.  This type of advertising has been used in a similar way with online advertisers.

With the Online medium, a user's IP Address, which is like the address where any internet based information is sent to, is converted into a street address or GPS Address.  Then an online application would cater the ads served on a page to that user's GPS or physical street address.  For example, if I search for "Cars" on Google while in the Houston area, the following Google ad comes onto the page:

Houston Cars

Visit Your Local Audi Dealer & Find
Great Offers Today! Official Site.
www.websitelink.com Houston, TX

The GPS Advertisements on cell phones would work in the same manner.  If I am walking down the street and lookup "Clothes" on my cell phone, the advertisers using the GPS location marketing might throw up an add saying "Come now to get new Shirts 20% Off - walk 100 feet south on Acorn St".  Thus the power of this incredible new technology!

Read more in the Inc.com Article - "We See You - Want A List of Nearby Stores?"