U.K. operator O2 and Placecast have begun a large-scale location-based mobile marketing effort with L’Oreal and Starbucks.
The six-month trial will launch with the 1 million O2 customers who have already opted-in to O2 Media, the carrier’s mobile marketing arm.
When O2 Media customers who have indicated they’re interested in food, beverages or beauty enter a geo-fenced area owned by Starbucks or L’Oreal, they will receive a text message with a promotion or discount for the brand. Starbucks is kicking off the effort by offering a discount on its VIA Ready Brew at a nearby branch.

“We’re excited about partnering with O2 because they’re a really innovative brand, have a great customer base, have already had success with SMS and are ready to take it to the next level,” says Placecast CEO Alistair Goodman. “To my knowledge, this is the first time a carrier has launched a location-based mobile marketing program like this one at scale, with a million customers and major international brands.”
Customers must be at least 16 years old to sign up for the service, can opt out at any time and receive a maximum of one SMS or MMS per day from marketers.
The service is based on Placecast’s location-based mobile marketing platform and works on any cell phone, not just smartphones. Placecast’s service uses network data, not GPS, to determine the location of customers, so subscribers don’t need a GPS-capable phone to participate in the mobile marketing scheme.
“I think there are lots of opportunities for operators all