Recap: Foursquare Nears 1 Million Check-Ins, But Why is the Mainstream Still Checked Out?
June 4th, 2010 by Jessica Weil
On yesterday’s episode of This Week in Social Media, Mike O’Toole was joined by fellow PJA team member Robert Davis, VP, Digital Marketing to discuss the status and evolution of geo-location services. Here are some highlights from the show:
Foursquare hype. Last week, the folks at Foursquare predicted that the network will reach one million check-ins per day by mid-June, yet Time magazine has named the service one of the 50 worst inventions.
“Checking in needs to have a purpose.” Robert uses this quote from ShopKick CEO Cyriac Roeding to illustrate the notion that a key part in turning location-based services into a mainstream success is to find offerings that scale beyond appealing to the “geo-nerd.”
Google and Facebook: the 8,000-lb. gorillas. Though many of us are familiar with niche geo-location platforms like Foursquare, MyTown, Gowalla, and Loopt, Google and Facebook are both working toward incorporating location-based features into their pre-established networks. “Facebook,” says Robert, “will be a formidable player.”
Privacy, or lack thereof. There are, of course, dangers associated with essentially telling people where you are all the time. Facebook and Google have both struggled with this, but whether or not it will be a difficult hurdle to cross depends on the degree to which the consumer is going to care.
For retailers, there is no value in the check-in. Retailers and loyalty marketers tend to think in terms of recency, frequency and monetary value. Retailers currently using check-in programs, such as Starbucks, are able to get a handle on recency and frequency, but monetary value is the missing piece of the puzzle.
Consider the opportunities that your mass influencers can provide for your business. According to a recent Forrester report, 16% of the online audience are responsible for 80% of brand mentions in social media. Marketers need to start thinking about these influencers; these are the people to whom they should consider tailoring their geo-location offers.
What are your thoughts about geo-location—are you checked in or checked out?
June 4th, 2010 at 4:24 pm
Hi Mike and Robert -
Sorry I missed your show – sounds like it was a great discussion. I just came back from moderating a similar discussion around location-based marketing, social gaming and virtual worlds. I believe all 3 will ultimately converge thanks to soon arrival of 4G and increasingly more powerful smartphones. But agree with you that the key to mass adoption for all is UTILITY.
I wrote a post specifically on this with respect to Foursquare a few months back – http://bit.ly/azxbm8
Definitely think there are good opportunities long-term for consumers and brands in geo-location, but someone has to solve the utility equation in order to win.
Would love to hear yours and others thoughts on my post.
Cheers,
MB
@iMediaMichelle
June 7th, 2010 at 9:57 am
Michelle,
Thanks for the comment, and please do listen in when you have a chance. Very thoughtful post, by the way. I left this comment there:
Michelle,
Great post. As you point out, the big challenge for the geosocial networks is utility. If Foursquare can define a useful engagement model for marketers, utility for users will follow. Your suggestions are spot on: meaningful badging, white label, ability for brands to talk back, etc. could all define a more interesting, valuable model for retailers. I hope Foursquare is reading!