The retailer is running a mobile ad campaign within Pandora’s iPhone application. Best Buy is using location to not only drive in-store sales, but also better target consumers with relevant offers.

“Best Buy has thought carefully through the call-to-action with this campaign as it uses phone location to show the nearest store and directions, which is a nice mobile-specific and special touch,” said Simon Buckingham, CEO of Appitalism.

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

Best Buy did not respond to press inquiries.

Mobile target
The Best Buy mobile ad features the nearest store location by using the consumer’s GPS-enabled device.

The mobile ad also encourages consumers to shop deals.

When users tap on the mobile ad, they are redirected to a mobile landing page that promotes the ongoing deals.

For this specific ad campaign, the deal was for a Samsung 55” Class 1080p 240Hz 3D LED HDTV for $1,899.99.

The landing page also shows the address of the nearest Best Buy location and includes a click-to-call function.

Consumers can also pick a different location or choose to have that product shipped.

Additionally, consumers can buy the product by pressing the Buy With PayPal button.

From there, they are redirected to a PayPal page where they can log-in to their account and check-out.

Location-based shopping
A mobile ad campaign such as this is a great way to drive foot traffic to Best Buy’s locations.

Additionally, the mobile ad serves relevant deals based on the user’s location.

Consumers who see that the store is close by are more inclined to tap on the mobile ad and see what the retailer might have to offer.

Although Best Buy is staying ahead of the game by incorporating location into its marketing mix and letting consumers shop products, consumers may not be ready to buy big ticket items through their mobile device.

“Best Buy also allows mobile purchasing through the mobile ad, but I don’t know how comfortable consumers would be spending $1,900 on PayPal to purchase on their smartphone – yet,” Mr. Buckingham said.

Final Take
Rimma Kats is associate editor on Mobile Commerce Daily, New York