Abstract: Methods for providing distance-based delivery of advertising messages to users operating location-aware devices are described. A distance-based ad server receives ad content associated with a bounded distance from a geographic location, and also receives from each advertiser a payment, based on the distance from the physical geographic location, placement areas, and placement time interval for distributing the ad content to consumers located within the bounded area. The price charged for transmitting the ad is based on one of: a fixed pricing model that imposes the same price on all ads for a certain geographic reach and duration, a graduated pricing model that imposes a different price on ads depending on geographic reach or duration, and a bidding model that imposes a price based on an average price for a target area and bids received by a plurality of advertisers.