The company is running the targeted ads within Pandora’s iPhone application. The ads tell the user where the nearest Best Buy location is.

“Delivering a mobile call to action when a consumer is close to a location is very smart,” said Wilson Kerr, Boston-based mobile marketing consultant.

“Mobile consumers who are walking by a retail location are most-able to act upon the message and convert an in-store purchase,” he said. “Or, if they prefer, they can convert a sale via a mobile-optimized commerce site.”

Mr. Kerr is not affiliated with Best Buy. He commented based on his expertise on the subject.

Best Buy did not respond to press inquiries.

Call to action
The Best Buy mobile ad reads “Shop Early. Save Big. Ends Today. 1.1 mi away.”

When consumers tap on the ad they are redirected to a mobile landing page that features the products the company is offering.

Consumers can view the price of the deal and how many are in stock at their nearest location.

Users can also browse the closest Best Buy locations, see how far they are and use the click-to-call function to contact a store.

“If a brand does run an incentive, the incentive should be a mobile-specific special or discount, offered in a time-sensitive manner,” Mr. Kerr said.

“The daily deals trend is alive and well and smart retailers will capitalize to drive traffic,” he said.

Relevance
Running a geotargeted ad such as this is an effective marketing strategy for Best Buy.

Not only does this help the company drive in-store traffic, but offering consumers an incentive, such as deals, will give them a reason to click on the ad.

“PayPal just reported that mobile transactions are up 512 percent over last year,” Mr. Kerr said.

“As mobile commerce volume explodes in 2012, retailers will have the budgets to support mobile marketing and will increasingly use geotargeting to deliver mobile ads that can both convert mobile commerce site sales and support local retail locations,” he said.

Final Take
Rimma Kats is staff reporter on Mobile Commerce Daily, New York