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    4 20.06.2010

Location: The next big thing on the web

by James Duthie on 20.06.2010

Twitter is so 2009! While most businesses have only just begun to fathom the phenomenon that is social media, the digital natives are already shifting their attention to a new craze. And that craze is… location, location, location!

For consumers, location based services have exploded in popularity with the emergence of GPS enabled smart phones. The iPhone was the first handset to come equipped with in-built GPS capabilities. Most rival smart phones swiftly followed suit, which prompted a flood of location-driven applications that deliver unique services/utilities based upon a user’s location.

Foursquare is perhaps the most recognised location-based mobile application. It allows users to “check-in” to different destinations in their daily travels. At face value this may seem a menial exercise, but it provides a range of benefits to the user. Firstly, it alerts the user’s friends to follow their movements. If I see a friend check-in to a local restaurant, I may decide to join them. If not, I’ve got a greater awareness of what they’ve been up to next time I do run in to them.

Secondly, Foursquare also encourages users to leave comments and tips about the places they check-in to. These tips are publicly available to anyone using the service, thereby taking local word-of-mouth to a new level. On an interstate business trip but don’t know where to go for a good bite? Just tap into the collective intelligence of Foursquare to discover the best local restaurants.

For businesses, the growing usage of location based services is creating new marketing opportunities. Already, Snacksquare has emerged, giving merchants the ability to connect with Foursquare users that check-in to their venue. Once connected, the merchant can deliver offers to encourage repeat patronage. The business application and cost efficiency for small businesses in particular is unquestionable. Google is also keen to enter the location based advertising game, evidenced by their emerging mobile advertising platform. Surely, we are not far away from truly local Google ads that are served based upon a user’s specific GPS co-ordinates.

A number of Australian businesses have been early to spot the emerging trend and build branded mobile applications with location-driven utilities:

  • Cab company 13CABS have created an application that allows users to book a cab straight from their mobile, by utilising their GPS co-ordinates
  • The Coles iPhone application alerts users to current specials at their local supermarket
  • Insurance company NRMA developed an iPhone application that enables users to request roadside assist direct from the mobile to their current location
  • The Yellow Pages mobile application filters search results based upon the user’s current location

Beyond specialised functionality, a store locator feature (based upon current location) is practically a staple of any business related mobile application.

Whether it’s location-driven utility, or simply localised ads and offers, the new found opportunities for marketers are extensive. Which begs the questions; how can you leverage location within your business?

Comments
    • Matthew Ho on 20.06.2010 at 5:51pm
    • location based services (LBS) is great for discovery, particularly if you do not know where you are. Your phone knows where you are, and can tell you about the venues, tourist sites, etc…

      The third benefit is push notifications – where you can recieve offers from nearby locations.

    • Karl Kopp on 20.06.2010 at 5:51pm
    • Google ‘GeoSentric’. Their Benefon Esc! was the first GSM + GPS phone available WAY before Steve Jobs and his iPhone :)

    • Arthur K on 20.06.2010 at 5:51pm
    • I really like how companies have applied this to assist with their service offering.

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