Check out this article about location level targeting with mobile. The potential that comes from this data is one of the big advantages of the medium. Compared to traditional desktops which can only do a limited amount of location based targeting, mobile allows for apps to target at a hyper-local level. Knowing when and how to use this can be an important part of the user experience.
Focusing on a local level isn’t as simple as knowing someone’s exact location. There are decisions that need to be made about what scale provides the most benefit as well as ensuring that the use of location improves the app experience.