Businesses leverage location-based services for marketing by delivering targeted advertisements and offers to consumers based on their geographic locations. By utilizing technologies such as GPS and mobile data, businesses can send tailored promotions to users' smartphones when they are near physical stores or during specific events. This proximity marketing increases engagement and conversion rates, as it provides relevant content at the right time and place. Furthermore, it allows businesses to gather valuable location-related data, which can enhance their marketing strategies and improve customer experiences.