2010 Will NOT Be "The Year of Location"

Map Pin by MukumburaMany, many pundits have predicted that this will be the year that location-based apps (and, implicitly, location-based marketing) will hit the mainstream. It's understandable to see why they would think that - people are sharing more and more information on Facebook & Twitter, GPS-enabled smartphones are becoming nearly ubiquitous, and popular location-based games Foursquare and Gowalla are rapidly growing.

Still, I don't believe that location-sharing will become truly mainstream within the next 11 months.  Indeed, I think that most experts and pundits are underestimating the privacy and security concerns that will come to the forefront as location-aware services get more popular.

In my mind, there's a clear distinction between services and applications that use your location to provide information or services and those that use your location for social purposes.

I routinely use the GPS-enabled features of my iPhone to get driving & transit directions, get local showtimes, find nearby restaurants, locate the closest Citibank ATM, Redbox kiosk, or Starbucks location, and more.  I consider myself a pretty "tech savvy" user.

However, when it comes to sharing my location with others - be they friends or folks unknown - I'm much more conservative.  True, I've been playing around with Yelp's new "check-in" feature, and I occasionally mention where I am in a Twitter update, but these are the exceptions - not the norm.  If I, as a tech-savvy user, am so unwilling to share my every movement, why would an average Joe want to?

As a marketer, I see the immense appeal of locational data.  If I know you're near my business, I would love to be able to send you a limited-time deal to get you in the door.  However, as a user, I don't want every business within a 2-mile radius to be sending me special offers - I just want to be able to get offers from my favorite businesses, regardless of my current location.

Therein lies the primary problem of "location-sharing" for me: motivation. What is going to motivate the average American to share their current position with the world?

Foursquare logo with BadgesFoursquare and Gowalla are structured as games, with users unlocking "badges", "mayorships", and "pins" that they can virtually share with friends.  The most active users use the services to stay in touch with friends and meet new people who patronize similar businesses/venues.  In my mind, though, this has a pretty limited appeal - it's like the Dungeons and Dragons community for the 21st-century.

Yelp Check-In ExampleYelp's "check-in" feature allows reviewers to become recognized as "regulars" of an establishment, which (in theory) will allow those reviews to carry more weight.  However, I don't really care if an individual reviewer is a "regular".  The true value of Yelp isn't in any single review, but in the aggregate of dozens or hundreds of experiences.

As a marketer, I would love it if people wanted to automatically receive offers from local businesses.  But the reality is that this vast majority of Americans want less advertising, not more.  They're not likely to sign on to a platform for the sole purpose of making my job easier.

Additionally, there are are some substantial privacy concerns with publicly sharing one's location. Already, social media-types are advocating against mentioning vacations & trips on Facebook & Twitter, out of concern that doing so puts out a metaphoric "please rob me" sign in front of people's homes.

Furthermore, does the average American even want their friends or coworkers (let alone strangers) to know where they go and what they do at any given time?  Based on the brouhaha surrounding recent Facebook privacy setting changes, I don't believe so.

I am convinced that location-based marketing will get more pervasive as time goes by.  Indeed, I fully expect that my location-enabled apps will begin providing more locally-targeted ads, deals, and offers over time (especially as Google expands its presence in this arena).  Ideally, these additions will provide developers with a source of revenue while providing me with even better service (one can dream, right?).  At the end of the day, though, I'm not sure that persistent location-sharing (a la Foursquare or Gowalla) will ever become truly mainstream - and certainly not in 2010.

Agree?  Disagree?  Let me know in the comments below, or tweet me.

(Images: Mukumbura on Flickr, Mashable)

Comments

Dan, Great article - I like

Dan,

Great article - I like your comparison of FourSquare and D&D.

I think the trick to location based marketing (or any marketing for that matter) is to keep it relevant to the customer. It has to be more than just an offer of a coupon for me to give up that kind of info. There's a saying in sales training - "people love to buy, but they hate to be sold.

Good food for thought. Keep it coming.

D.

While I agree that mainstream

While I agree that mainstream users aren't going to update their friends about the day-to-day details of their lives (it's silly, but hardcore Foursquare users update at places like bus stops and laundromats just to get points) I don't see that as too large of a hurdle for Foursquare to overcome. You yourself even said that there are occasionally times when you're at a place and/or doing something that you think others would be interested in knowing about. String together enough of those occasional places, and get your friends to do the same, and suddenly you're all at least semi-active geo-location users. Plus, unlike Twitter, geo-location services have value even when only a few of your friends are using them, so you don't have to play the numbers game to try and build up your network just to get the 'value' out of the service. Just add a few of your real life friends, update them about a few of your more interesting locations (think movie theaters, restaurants, parks, museums, stores, and any other place/event that we often tell our friends about after the fact anyways) and the first time someone serendipitously joins you for a drink or a bite to eat, the service has instantly proven its value, and you're more likely to become a repeat user. To give another mainstream example, I've updated Foursquare to indicate that I was at the movie theater, and had friends ask about the movie that I saw the next time we were together. As a conversation starter and ambient data source for your friends, I think geo-location services have a huge and easy to understand benefit to the mainstream user.

Thanks for the reply! I agree

Thanks for the reply!

I agree with you that geo-location can provide value (much like Twitter can, if used properly), but I simply doubt that middle America will adopt it - and to my main point, certainly not this year.

A real game-changer might be if Facebook aggressively pushes into the geo-location space, or if Google is able to convince its users that Latitude is a good thing. Until an really established player moves into the market, I truly believe that location sharing will remain a niche pastime.

Re: Thanks for the reply! I agree

Since middle America still hasn't really adopted Twitter yet, I'll concede that geo-location services probably have a long way to go towards mainstream adoption, which means that it's unlikely it'll happen this year.

I agree that an established player could more easily bring geo-location to the mainstream by sheer number of users alone. (Just look at today's announcement of Google Buzz for example.) Because of that, it'll be interesting to see if, and if so when and for what reasons, the mainstream adopts geo-location.

Re: 2010 Will NOT Be "The Year of Location"

Hi. Just a note that I mentioned this article in my blogpost for brandchannel.com:

http://www.brandchannel.com/home/post/2010/02/09/Foursquare-Courts-More-...

Re: 2010 Will NOT Be "The Year of Location"

Thanks for the mention!

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