It seems like every time I log in to Twitter I see more people using location-based services such as Foursquare or Gowalla. Foursquare and Gowalla have 1.3 million and 150,000 users respectively, with these
numbers increasing daily.
These new services have an air of intrigue around them with many consumers asking what is the point. On the flip side, as an interactive agency we have to ask ourselves, “Why are programs like these becoming popular, and what does it mean for clients?”
What is Foursquare?
Foursquare was developed as a location-based social networking service that allows users to “check in” at certain locations. This service has quickly turned into a game that allows users to earn badges for frequently checking in, sync with their Twitter and Facebook accounts to give a shout out to their current location, and on top of that if you “check in” the most at a specific location you become mayor of it.
So why are they popular?
People join social networks because they want to share their daily thoughts, plans and activities with the click of a button. Location-based networks, like Foursquare, allow consumers to share their current location and what they think about it. Users can now share reviews and thoughts about businesses in real time via a social network. Foursquare even allows you to sync your Twitter and Facebook accounts to update your status whenever you check in to a location. This functionality of syncing across all social networks could be the future.
What does it mean for businesses?
Consumers will be engaging with businesses without moderation. Upon first glance, it seems like a great thing for businesses, as users will be competing to “check in” the most at a certain place. With users competing to become the mayor of a location, it can only mean positive word-of-mouth reviews, so to speak. It also presents opportunities for businesses to offer promotions like “check in at our business in the next four hours and get a free item.”
What does it mean for advertisers?
With location-based social services being relatively new, it is hard to determine what their impact will be on the advertising industry. Agencies could start by helping interject typical marketing strategies such as offering discounts, certain privileges or prizes to users who check in most often or during particular time frames, etc.
Will it spread to other networks?
Recently, Yelp added the “check in” feature with Facebook not far behind. Twitter also offers a popular location-based feature. Yahoo! has considered acquiring Foursquare for $100 million. The idea of location-based social networking is obviously gaining popularity, and will certainly spread to other networks. Now, will Foursquare be forgotten after the big guys such as Facebook and Google master it and spread it to their huge user base?