This week's announcement that Facebook are launching location-based functionality fills me with anticipation, as, until recently social media always had something missing - online remained virtual, and the link between it and a physical location hadn't traditionally existed. Although brands like Foursquare and Gowalla have successfully started to address this missing link, and are effectively rewarding consumers for their interaction, it wouldn't surprise me that a location-based service hasn't been on Facebook's radar for a while now, and that they've been watching and waiting to see how well these services are accepted and adopted, before seizing the opportunity and taking it to the next level, the way only Facebook can.
Facebook has always been about helping people share their lives, so why wouldn't they want to help people answer the question of 'WHERE' are you right now, and assist them in exploring, sharing and comparing better than anyone else?
For Facebook users this service will still be about their friends; where are they right now, what did they do last weekend, who were they hanging out with? But it will also help them discover new places and see recommendations around them, and for high value users, like the equivalent of Foursquare "Mayors", exclusivity could easily become key. It's about deals, rewards, and being on the inside loop.
For businesses the opportunities are likely to be even more significant. They will be able to use Facebook to really focus on word of mouth, driving in-store visits and creating physical loyalty. For them it's about data; how many people visited their establishment, have they been there before, where were they beforehand and where did they go afterwards? Being able to understand traffic cycles and how well promotions perform will be of immense value. This will enable smart businesses to reach people not just in the most powerful way possible, but in larger numbers, and at a lower cost, than ever before.
The value lies in the potential for new, scalable, geocentric analytics, as location based social networks allows for a variety of scalable data that has always been absent, as up until now social media has provided very little, if at all any, analytical data for businesses trying to track ROI. It is adding structure and numbers to online feedback that was otherwise strictly qualitative.
The first example of a brand looking to utilise this technology with Facebook is McDonalds who are reportedly building a location-based functionality that could potentially be a benefit to their customers who will automatically have an ability to “check in” at restaurants and share menu items with their friends. By turning their locations into media channels this initiative could have a massive benefit for the brand in their quest for social media impact.
For smaller brands, this technology will also have the potential to generate not only interest, but revenue. For example, local travel service providers could partner with retailers around their location and alert visitors of their presence. A hotel or restaurant could alert its customers of a special deal for a city tour, a museum exhibit, or local excursion. The possibilities are wide ranging for enhancing local small business via cross referencing and referrals.
I believe that in the future a person’s location could be the most important part of any social networking campaign and sharing that information with friends and colleagues via Facebook could have a massive impact on the success of any marketing campaign’s potential.
Stephen Beasley
Head of Digital Stratgey, KLP