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In a move that’s sure create both interest and controversy, CBS Mobile has teamed up with social networking company Loopt to offer location-based ads on CBS Mobile News and CBS Mobile Sports.

It’s going to be using Loopt’s GPS technology. The Mountain View company, which was started by Stanford University sophomores Sam Altman and Nick Sivo in 2005, creates software that allows people to track the location of their friends via their mobile phone connection.

That probably means they were like, nineteen. Holy crap. When I was nineteen and in college, I was looking for the nearest keg. Found them too, even without GPS. Anyway…

Right now the system will only be available on phones that are GPS ready and that have carriers that have an agreement with Loopt. Namely, Sprint and Boost. Loopt is in negotiations with other carriers.

At this point, CBS hasn’t lined up any advertises yet - some are understandably skittish - but that will likely come. I’m betting there’s a wait and see attitude here. I’m also betting that someone is going to get a great deal if they go first.

All plans for it are to be opt-in, which I think is an absolute must. You don’t want people to have some nasty surprises. But what I don’t see is relevance. I don’t see any plans (at least yet) that allows a participant to chose what types of stores they’d like to receive ads from. That may not be a problem with a coffee shop, but if it means clothing retailers it could get confusing. Men and women don’t wear the same type of clothes.

Overall, I think this is a great idea. It may drive some users nuts and they may want to end up turning it off. But instead, I think this will be a new, and successful, way of advertising.

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