Aug 10
26
First, Some Background
Location-based services (LBS) have been gaining major steam over the last twelve months, both in usership and in publicity. The idea behind LBS is that users “check-in” to places around their city using their mobile device and friends within your network can see when and where you check-in. The value to the user is an increased connectivity with their close circle of friends. For example, if I’m walking around downtown, I can scroll through my list of friends, see if anyone is nearby, and pop in to have a coffee with them. It’s this idea of serendipity that really piques users’ interest. The LBS viral loop is that the service gets more useful and robust the more friends you have in your network; therefore, it’s in your best interest to recommend the service to as many of your friends as possible.
The other driving factor behind the LBS craze is the game element that many services have woven in. Some networks give you points based on the situation of your check-in (e.g. your first check-in at a particular place gets you 5 points, and you get one point for each additional check-in), some have badges that you can unlock (e.g. a Starbucks badge for checking into three different Starbucks locations), others have passports that get “stamped,” some have items that you can pick up or drop for other users to find later, and still others have a scavenger-hunt activity element built in. People love playing these games that involve “leveling up” and seeing how you compare to your friends; that part is just human nature.
Today, there are many LBS, but only a few that are truly considered “players” in the space:
• Foursquare
• Gowalla
• MyTown
• Yelp
• Loopt
• Scvngr
• Latitude
Foursquare has the largest user-base, at roughly 3 million, while other services like Gowalla and MyTown have significantly fewer. Yelp is notable because their LBS ties into their restaurant & business reviews, making their offering more robust. Loopt has the most advanced rewards system, called LooptStar. Scvngr is a relatively new player whose game centers on group tasks and scavenger hunts. Latitude is interesting because it was a service originally called Dodgeball that Google purchased in 2005 (the creators of Dodgeball would later go on to create Foursquare), and it may play a pivotal role in Google’s rumored social network.
Until now, LBS have been reserved for early adopters, but the recent rise in smart-phone usage has also lead to an increase in interest for services like Foursquare and Gowalla. On August 19th, Facebook made a long-awaited foray into the LBS space with their announcement of Facebook Places. With 500 million users, Facebook will take LBS to the masses. Within the first few months, Facebook Places will have more activity than all other LBS combined.
What Does Facebook Places Do?
Places functions very similarly to other LBS in that when you’re at a Place, you can check-in on your mobile device, allowing your friends to see where you are and what you’re doing. Within the application on your device, you can see who is “Here Now” where ever you check-in, and you can also see “Friends Nearby,” which other services don’t necessarily allow you to do. Friends Nearby will list your Facebook friends who have checked in around you and their distance from where you currently are.
When you check-in, Places will essentially update your status and inject the story into your friends’ news feeds:
Other LBS, including Foursquare, Gowalla, Yelp, and MyTown, have already signed up to partner with Facebook Places. This integration between Facebook and the third-party service allows for cross-posting between profiles. For example, a user will now be able to check in at a venue on Foursquare and push the resulting story to Facebook, which will appear in friends’ news feeds:
Facebook Places does not, however, have any game elements. There are no points for checking in, there are no badges, no passports, and no items to pickup or leave behind. Facebook will be chastised in the coming weeks for not including any of these “sticky” things that keep people using their service; something that the other LBS really took advantage of. But those who are saying that Facebook Places is too boring and offers nothing new over the competition are not seeing the big picture.
Facebook Places API
The day after the launch of Facebook Places, the Read API went live. This version of the application programming interface allows developers to access the check-in data associated with their accounts and their friends’ accounts; by itself, not very valuable. But in the coming weeks, Facebook will be making the Write and Search APIs public, which will allow developers to publish check-ins on behalf of users (who allow it) and search for nearby places, respectively. This will allow brands to build their own custom engagement execution within the Facebook Places interface. For example, a sporting goods retailer could develop a custom tab on their Facebook Page that integrates Places in such a way that when a fan of the New York Giants checks into the New Meadowlands Stadium, it will post the check in to the fan’s wall, it will post it on the custom tab on the Giants’ Facebook Page, and it could also unlock a tiered incentive offer for Giants’ merchandise. The execution would be entirely up to the New York Giants. This brings us to another major effect of Facebook Places as it relates to a brand’s overall Facebook strategy.
Facebook Pages
When a user creates a Facebook Place, it exists as a whole new entity on Facebook. Initially, these new pages won’t be tethered to anything, but will contain a lot of user information:
Currently, it is possible to merge your Facebook Place page with your brand’s Facebook Page, and this is recommended for brands with only one Facebook Place. For other businesses that have many locations in real life, like Starbucks, it isn’t recommended to merge the Facebook Place page and the brand’s Facebook Page. Facebook is working on making this Places-Page integration for brands with many locations, but right now, those brands will have to settle for having their Places be distinct from their brand Page.
From a data perspective, you can gather insights from your Places page by claiming your business on Facebook. Click, “Is this your business?” and simply follow the step-by-step instructions to claim your page, which will enable you to make edits to the Place and dive into user data:
Restrictions
1. Cheating: The geolocation that Facebook Places uses comes with the same drawbacks as other LBS in that it’s not exact. There is a fuzzy “you’re in or around this general area” involved with Places, which enables users to cheat, just like they have in Foursquare, Gowalla, and others. Why would anyone want to cheat at a geolocation game? Many businesses offer incentives to check-in, be it psychological like a “mayorship,” or monetary like a discount, so checking into places that you’re not actually in can be tempting. As time goes by and the GPS on mobile devices gets more precise, all of the LBS data will become more accurate, and therefore, cheat-proof.
2. iPhones: Facebook Places is currently only for iPhone users, and there has been no announcement as to when it will be live for Android and Blackberry users. That said, iPhone users can tag their friends in their check-ins if their friends allow it (just like tagging them in a photo you upload), so users that don’t have an iPhone to be involved in Facebook Places.
3. Global: The bigger issue is that Places is only available to users in the United States. Only about 30% of Facebook’s 500 million members reside in the US, so for Places to really become ubiquitous, Facebook needs to open it up globally.
What Does It Mean For My Business?
Begin ramping up for Facebook Places. If you haven’t already done so, claim your venues and locations on other LBS, like Foursquare, Gowalla, and Yelp, so that you can be in full control of the integration. Begin strategizing about geolocation and how it can help your business. Will you use it to boost awareness of your brand? Drive more foot traffic to your store? Help build attendance for your event? If you have only one location for your brand, merge your Facebook Page with your Facebook Place; there isn’t any drawback with only one location. If you have multiple locations for your brand, Facebook will be rolling out a solution to keep track of all your locations and merge them with your brand Page. When Facebook releases the Search and Write APIs, the geolocation world will be at your brand’s fingertips. What will you do with it?
Have questions about Facebook Places or other LBS? Leave a comment below or tweet me!
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