Andrew Grinaker | Digital, SEO and Social Media Strategist Blog | Seattle, WA

The Challenges Location Based Apps will Face
by Andrew Grinaker

I admit that I am a sucker for Mayorships and Badges. If I love a particular business, I need to be the Mayor and monitor to make sure that no one has stolen it from me. While Foursquare and other location based apps are reporting record users and check-ins, I do have doubts about them being able to go main stream. In a recent study Forrester showed that only 4% of adults have ever used a location based application., with only 1% updating more than once per week.

Yes, the social media community has latched onto the “check-in” phenomenon and businesses, small and large have started to leverage the sites to provide coupons and promotions. However, ask an internet user not deemed a “power user” and you might be surprised at how many people would not take part in “sharing their location.” The general public still has doubts about privacy and telling people where they are at any given time.

The other fear is that social media giants Facebook and Twitter are hard at work at implementing location based services into their sites. Twitter offers location based tweets while Facebook announced in May that they will incorporate location based technology into their platform.  If the user doesn’t have to go outside of the two major social channels, why would they worry about checking-in to multiple sites?

One other concern for Foursquare executives has to be the ability for medium to large size companies to create their own location based application. Companies like Starbucks, Pepsi and the TV network Bravo have already created applications centered towards their users, offering promotions/coupons when customers check-in.

The key for success for these companies lies in strategic partnerships. Recently, Foursquare announced that they are in talks with Google and Microsoft on a search deal to help share their marketing data. It is a start but they need to continue to expand partnership opportunities.

In addition, Foursquare, GoWalla, Brightkite and Whrrl (my favorite) should be focused on developing relationships with as many businesses as possible, enticing businesses of building brand reputation and bringing more customers through the door. In return, consumers need to be rewarded with coupons and promotions in order for them to “share” their location with an application.   The non power user and first time users will expect coupons and promotions every time they check in.