• by Laurie Sullivan  @lauriesullivan, May 6, 2011

Location-based marketing and search continues to gain attention from venture capitalists and marketers based on its accuracy to target messages. JiWire said Friday it raised another $20 million in Series C funding, bringing the total capital to $45 million. The company plans to use the funds to build out technology and services, as well as add locations across the globe after entering the U.K. market last year.

Trident Capital, Palo Alto, Calif., led the latest finance round. Existing investors include Comcast Interactive Capital and Draper Fisher Jurvetson. Trident Capital co-founder John Moragne will join the JiWire board, bringing expertise in location and advertising after working at MapQuest, Homeaway and Turn.

JiWire plans to develop new ad products and platform technologies that create richer formats and better targeting for advertisers and consumers, and expand into new geographic markets that have developed Wi-Fi and cellular infrastructures that can benefit from location-based advertising. Dave Courtney, CEO of JiWire, said the plan is to acquire small companies that have development talent, intellectual property, or specific products that complement the company's portfolio or that address new geographic markets.

But are the majority of consumers ready for mobile location-based services?

While people hate targeted ads online, the mobile environment tends to appeal to a different audience. Marketers believe consumers are more willing to opt-in and provide information.

"Internet access has become a utility like power or water. People expect to have it everywhere when they leave the house, without paying extra for it," said Aaron Goldman, chief marketing officer at Kenshoo. "Meanwhile, marketers are getting more sophisticated with their targeting techniques and ability to customize messages based on location. JiWire is capitalizing on these trends."

When asked whether consumers are ready for location-based online advertising and marketing, Goldman said not yet in the U.S. Most people in the U.S. are still trying to figure out how to use their iPhone. "Location-based ads will scare them," he said.

Matt Lawson, vice president of marketing at Marin Software, said 80% of people who own an iPhone and iPad don't allow cookies because the phones and tablets come out of the box with the location-based default off.

Research firm eMarketer suggests another view. While consumers find location-based services "exciting," many have yet to overcome concerns about privacy and security. Pointing to data from digital marketing agency White House, eMarketer published a note Friday suggesting that most smartphone users look at social connections as the biggest draw to location-based apps.

Among those who were familiar with location-based apps, 41% cite connecting to people they know or could meet as the main benefit; followed by 21% who say finding places their friends liked; and 17% who say being able to keep track of their movement patterns. Only 8% point to discounts and rewards as being the most important benefit. Only 4% care about the gaming elements of checking in apps like Gowalla and Foursquare.

If consumers could aggregate location-based or any data living in 100 places across the Web into one location, how would they manage it and would they give marketers access? The information creates a personal diary.

At the Search Insider Summit in Captiva, Fla., ClickEquations founder and president Craig Danuloff told attendees that consumers more often provide explicit data to share their whereabouts, enabling marketers to build a picture based on interest, intent, and specific location. Some have begun to share information on travel, dining and events they attend, but more opt in to share certain health and financial data as well.