GREAT discussion so far with some very fair points raised.
Used appropriately, Location Targeting should be an asset to the customer. Rather than bombarding the customer with coupons/offers when they're not in the act of shopping for a car (think mass email, text, phone calls, etc) Location Targeting delivers an offer precisely WHEN the customer is shopping. Many dealers also choose to target their own location - delivering an incentive to after-hours customers when they're on the lot.
I'd like to point out that Location Targeting, used appropriately, DOES NOT collect location data on each specific customer. Apple and Google don't allow this for obvious privacy reasons. Rather, the app utilizes the existing geo-targeting framework built into each app platform. In this way Apple keeps location data distinctly private.
As a point of reference, a location targeting message appears on the customers phone in the same way a text or push notification alert displays. As a result, many of the notifications users receive today from their downloaded apps are in fact location-based. They just don't know it.
In summary, just like all new marketing channels, there is a way to abuse and distort. Customer trust is extremely important and it's ultimately up to us to appropriately use Location Targeting in our mobile marketing strategies.
-Ben
