Twitter is reportedly working on geo-located promoted tweets that would allow retailers to target consumers in close proximity to their store.

Location, location

The news comes courtesy of AdAge, who first reported that location-powered ads would be ready before the end of the year.

According to reports, promoted tweets would allow merchants to alert nearby users to specials, in-store offers and new merchandise.

Catching up

The report indicates Twitter is playing catch up rather than re-inventing the wheel.

Facebook has offered targeting tools for some time, as its user base becomes increasingly mobile.

Twitter on the other hand is almost exclusively mobile, so it makes sense to focus on location-specific ads.

Retail fightback

After many pundits predicting the end of bricks and mortar stores in the face online retail, the past year has seen a rise in the number of ways retailers can engage with online audiences.

eBay recently rolled out a window shopping project, while location-based service Yelp continues to grow in popularity (helped by partnerships with Facebook and Apple).

Location-powered promoted tweets could prove another way retailers can adapt to changing buying habits. One thing that hasn't changed: everyone loves a bargain.

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