Location-Based Services (LBS) that are combined with ubiquitous smartphones usher in a new form of information propagation: Location-Based Advertising (LBA). Modern technologies enable mobile devices to generate and update location information automatically, which facilitates marketers to launch various types of location-aware advertising and promotional services to users who are in the vicinity. This chapter conceptualizes location-aware mobile communication as the locative and mobile media with a McLuhan's notion of retrieve of “locality” in the “networked” space of information flows, and examines the current dilemma faced by LBA in China through a case study. It first defines location-aware mobile technologies and influences such media afford for location-aware advertising and information propagation. It then provides an overview of the development of LBS and LBA in China. A case study of the LBA app “SBK” further offers a detailed examination how new models of advertising are developed with the technical affordances of location awareness, sociability, and spatiality. The chapter concludes with a discussion on the constraints and potential of LBA in China.