Think twice when you use your cellphone. Advertisers are vying for your information.

We all know that advertisers will do just about anything to stick their ad in your face. Tracking consumers on the Web has been an effective medium that allows advertisers to target ads based on collected information. However, if you think the pop up ads on your computer screen are annoying, brace yourself for what is coming down the pike. Cellphones are going to be the device that gives advertisers your interests, habits and location. Since cellphones are used for a variety of activities such as playing games, downloading applications, sending instant messages, browsing the Web and emailing, it has become the latest and potentially extensive way for advertisers to aim ads at consumers.

According to The New York Times, there was a story about the power advertisers are finding in using GPS as well as other details about user profiles, pulled from “smartphones” like the iPhone and Blackberry, to send highly targeted messages to customers— as granular as sending a coupon for an NYC restaurant when the phone sends up a GPS signal about a user’s location on Broadway and 42nd. The story notes that advertisers are willing to pay a steep price when they know they’re hitting just the right consumers.

The capability for collecting information has alarmed privacy advocates. “It’s potentially a portable, personal spy,” said Jeff Chester, the executive director of the Center for Digital Democracy, who will appear before Federal Trade Commission staff members this month to brief them on privacy and mobile marketing. He is particularly concerned about data breaches, advertisers’ access to sensitive health or financial information, and a lack of transparency about how advertisers are collecting data. “Users are going to be inclined to say, sure, what’s harmful about a click, not realizing that they’ve consented to give up their information.”

While a mobile device holds a great potential for advertising, I have to admit that this is taking it a little too far. The thought of advertisers knowing every move that I make and then reaching me on my mobile phone is extremely intrusive and unnecessary. I truly hope that consumers fight back on this one. Since it’s common today for consumers to cause a ruckus when they are not satisfied, I can only hope that the troops rally on this one. However, this seems like wishful thinking on my part.

Success amidst the recession

New start-ups may be moves born of necessity, but in tough economic times, thousands of Americans are taking the bold step of starting their own businesses. In fact, some of the biggest companies in America were born during recessions. Many of the companies that make up the Dow Industrial average were started during a recession or depression, these include: General Electric, Hyatt Corporation, Burger King, FedEx, Microsoft and Target. The list goes on.

Since many companies are struggling to stay afloat in this economy, it makes me wonder what steps they are taking to drive consumers to take action and satisfy the ever-demanding requirement to prove positive ROI. Consumers are focusing on the essentials and less on luxuries, so it seems as though traveling would be out of the question. Right? Well, a few hotel chains have a different story to tell. Marriott, Omni Hotels and Hilton are trying to make it easier for consumers to book reservations. So what is the secret sauce? The hotels are encouraging consumers to book through their mobile device. The hotels have reported that mobile hotel bookings show a positive ROI in this recession.

Although Marriot reported an earnings loss for the fourth quarter, Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year. And revenue from mobile bookings in January was headed upward fairly quickly, the hotel chain told Ad Age. The other hotels have similar results that they have shared. Omni Hotels’ mobile site has grown 85% in the past six months and Hilton’s mobile channel has generated a 22% return on investment for the brand.

These hotels might be struggling and cutting budgets across the board but they are willing to invest and experiment with new media which is worth noting in this dismal economy. The chains are using their database and loyalty programs to reach out to customers and let them know they are making booking decisions more convenient. Ultimately, this will allow customers to utilize their time more effectively.

If your travel plans change because of flight delays or bad weather, it will be convenient to make any adjustments with just your mobile phone. Furthermore, the hotel chains are one step ahead of consumers when it comes to a hotel experience. Chris LaRose, who directs Hilton’s website strategy, said the hotel is expected to double its mobile spending this year and invest in ways to get consumers onboard beyond just rooms booking by bringing apps and widgets into the fold. Other initiatives include mobilizing some of the services the hotel offers such as check-ins, arranging room service and booking sightseeing trips -- all in advance of arrival. "We're trying to ... incorporate a more holistic view that Hilton Hotels aren't just guest rooms. It's a stay; it's an experience," Mr. LaRose said.