For marketers, smartphones are a potential treasure trove, because they not only contain information about a user's mobile Web surfing habits and favorite applications but also his or her exact location. While privacy advocates are concerned about the potential for intrusiveness, for mobile marketers, location-based advertising is something of a holy grail. Eric Bader, managing partner of Brand in Hand, said, "Everyone's in an arms race to find out more and more about their users."

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