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Graphic in ArcMap - click on Map, get callout with coordinates

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Users came to me with another "make it like Google" request. They click on the Google Maps map, right-click "What's Here" and get a green arrow. Then click the green arrow and they get what they want. A nice arrow and a popup with coordinates in both decimal degrees and DMS. Perfection! The only reason they are even asking for something else is that we'd like to add our own data on top.

As far as I can tell, ArcMap has no built in method to do this.

The Go to XY tool requires putting the coordinates in (and displays them in XY, which the users don't like)
The Identify tool does give the coordinates (X,Y) but the users need a callout on the map.
So far the process is Identify - cut and paste - get callout. Live with XY. Inferior to the Free option online which they strongly prefer except for needing our data.

- Am I missing another built-in option?
- Is there a canned sample add-in or anything like it that would have this functionality?

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