This paper presents the theoretical knowledge in the field of mobile marketing, with a focus on activities that include location services in creating offers of products and services on the market, as well as communicating those offers. Marketing activities based on location services are the rapidly growing segment of mobile marketing in which companies are investing more resources in order to create personally, timely and geographically relevant value propositions for consumers. The focus of the paper is to present the company perspective when it comes to location based mobile marketing by showcasing its best practice examples, and discussing advantages and disadvantages of using location based mobile marketing activities. The theoretical background is supported by primary qualitative research conducted on the sample of experts from five companies operating on the Croatian market. The research insights are showing a high level of awareness of professionals and companies in the area of location based mobile marketing. Also, the research includes information on the state of location based mobile marketing activities in Croatia, whether they are being already implemented or in development. Furthermore, some future plans about location based mobile marketing activities were also included, although high costs and relatively small market inhibit more serious plans, such as the ones already present in Western economies. The technology viewpoint is displayed as well; by explaining what are the infrastructural requirements in order to implement location based mobile marketing activities. The paper also summarizes and presents the most important review of professional and current literature regarding the importance of mobile marketing in terms of consumers, businesses and the future of business in the markets deeply changed by innovations that mobile technology brings.