(0)24 361 2342; Fax: +(31) (0)24 361 2372. Effects of location-based advertising 2 AbstractAdvertising professionals have great expectations of Location-Based Advertising (LBA). The present study therefore set out to investigate whether ads that are tailored to consumers' location are indeed more effective than ads that are not. In addition it was investigated whether LBA is particularly likely to be effective when the ad is not only location-congruent, but also relevant to consumers' goals. Therefore, a 2 (location congruence) X 2 (goal relevance) experimental design was employed. These expectations were borne out: the location-congruent ad resulted in more purchases than the location-incongruent ad, but only when the ad was high in goal relevance.These results suggest that it is only profitable for advertisers to send 'local' messages when these messages are relevant.