Have you ever heard of PowerMat? It’s a small ‘mat’ that charges your phone, iPhone and more by just dropping the device on the mat’s surface. When a small company with a new product like that evaluates its advertising options today, they’ll be choosing from expensive options like print, television and radio, or web opportunities like banner ads or Google Adwords. These all have their advantages and disadvantages, but if they really want to make a splash with ultra-savvy consumers, the type that they’re clearly targeting, they’re going to look to something like MyTown.

I use the PowerMat example because the company just agreed to do a partnership with MyTown such that players who enter into Best Buy or other retailers will be offered special virtual items if they check-in. I can’t speak for others, but for me this is ‘wow’ advertising, and something that offers me benefits to interact with their brand. As a tech-savvy consumer, I am also looking for companies that demonstrate innovativeness in their solutions to my various technical problems. The bottom line is that this kind of promotion works for a consumer like me better than any other possible type.

For this reason, I think MyTown and other location-based games like FourSquare or Gowalla are going to be a marketing sensation. Sure, we’ve heard it all before, but from my perspective as someone who has observed the social games industry grow at a rapid pace, I feel that location based games can tie with product advertising in a way that echoes why Facebook games became popular to users. Specifically, I always felt that Facebook games became popular because they offer social pleasure to players. The idea of playing with my friend will almost always give me a pleasure bonus that defeats playing by myself or with AI robots.

Similarly, the idea of unlocking items based on my positioning is going to have a relevancy pleasure. We haven’t seen much of it yet, but the fact that a company can know where I’ll be standing or what I’ll be doing when I interact with their brand means they have a huge pool of information that can really improve the way they communicate with me. They can unlock virtual items for my game based on the game I’m playing, they can ask me to play a quick quiz game based on my surroundings for discounts, they can enable me to interact with other players in the local area… Really, the opportunities for marketing are endless.

Do you think location-based games are a game-changer? Or are they overhyped? Let us know in the comments.