Media Consideration
Location-based companies have been getting widespread media consideration of late. Fb prompted a stir this month when it introduced “Offers,” a promotional platform for native companies that works at the side of its “Locations” utility. “Offers” is simply the newest entrant in an more and more crowded discipline of location-based companies that already consists of Foursquare, Loopt, SCVNGR, Shopkick, and plenty of others.
Early Stage
It is honest to say that adoption of those assorted functions remains to be early stage. A examine by Pew Analysis performed in September revealed that solely four% of on-line adults use a service like Foursquare or Gowalla to share their location. Some have taken difficulty with examine as a result of it did not point out Fb “Locations” (which was launching whereas the examine was fielded). It is also notable that the query that Pew requested did not cowl location based mostly procuring or promotional functions.
Lot of Pleasure
Whereas these companies have but to achieve mainstream acceptance, the speedy development of theses companies (albeit from a comparatively small base) has generated quite a lot of pleasure. Foursquare not too long ago added it is four millionth member simply 50 days after reaching three million members. Little doubt Fb’s participation may even speed up curiosity and adoption.
The promise of location companies has propelled some massive gamers to take part. When Fb introduced “Offers” they launched with 22 premium companions. Hole gave away 10,000 free pairs of blue denims after which supplied a 40% low cost when somebody checked into any of their shops. The North Face gave $1 to charity for a retailer check-in (or a check-in to a nationwide park). Each McDonald’s and Starbucks have additionally introduced charitable donations for retailer check-ins.
Partnering With Shops
Different location based mostly companies like Shopkick and Checkpoints are partnering with shops and types to supply procuring rewards. Greatest Purchase and Macys, in addition to Kraft and Proctor and Gamble, are working with Shopkick to reward clients with incentives for strolling right into a retailer and extra for scanning barcodes of sure objects. Checkpoints, an iPhone app that launched in September and already has surpassed 100,000 downloads, additionally awards factors and different goodies for scanning some product barcodes.
Privateness Issues
For location-based companies to actually go mainstream, they must overcome privateness and safety considerations, no less than amongst a sure phase of shoppers. One avid on-line person stated, “I do not like broadcasting the place we’re or when my husband’s gone, only for security causes.”
Maybe wildly well-liked Fb will assist location-based companies notice its monumental potential. As Sam Altman, chief govt of Loopt stated, “Clearly location is just not but mainstream – it is nonetheless a younger-demographic phenomenon – but when anybody can change it, Fb will.”