We asked Australians if they ever used an application on their mobile phone or tablet that detects their location, 62% of the respondents said ‘No’. This shows that there is slow uptake of Location-based services within the Australian market.

Simply, Location-Based Services or LBS are information or entertainment services, that utilize the geographical position of mobile and desktop devices (which is based on your IP address). For non-webby folk, it basically links your physical location to your virtual profile.

Anchoring your virtual life in the real world

If you’re on Facebook you’ve most probably seen someone ‘check-in’ somewhere with a friend. If you’re a Gen Xer or Boomer, this may seem a little disturbing, for why would someone publish such information? Because, the early adopter/Gen Ys amongst us live in a transparent and interconnected world – where to be part of the collective consciousness demands such disclosure and the surrender of all information that is private (but not sacred). The web has moved from a functional tool, to a social tool, where younger audiences and more adept users start and build relationships online. This involves disclosing a great deal of information about yourself and what you’re doing – so why should physical location be any different?

More than maps

The majority of LBS users to date are using way-finding functionality (which we dub as a ‘utility’ benefit), applications like Google Maps and Nokia’s OVI maps. Second in popularity is Facebook Places, which has gained popularity because of the high penetration Facebook has within the Australian market

But, beyond the Google and Facebook heavyweights, LBS that use location sensing as an added dimension to their offer are the most common. We’ve grouped these into four easy to understand groups based on the functionality they deliver.

1. Save Dollars with the right deal in right place, right now

Standing on the corner of George and King Streets in Sydney, there are ’27 specials’ nearby from coffee and sandwiches to mobile phone accessories and lighting. Are you not one of those people who are naturally “in-the-know” when it comes to reduced prices within a reasonable distance? Now thanks to smartphones you can be alerted to daily deals and special discounts based on your location. It’s essentially advertising that is more targeted and creates an incentive for people to use your product, or experience your service.

Discounts or specials can be given to new customers (on first ‘check-in’) or loyal customers who ‘check in’ multiple times. Facebook Places and Foursquare show deals around you. Group buying services such as Groupon and Living Social ‘push’ specials to your desktop or mobile phone based on your specified postcode

Best applications for this: Groupon, Living Social, Facebook Places

Applications that integrate this feature: Foursquare

How could businesses take advantage of this feature?

This is the most obvious location-based service for brands with strong distribution to leverage. The old advertising model has evolved. Instead of paying millions for big glossy tv campaigns – you redirect those dollars into amazing discounts, getting customers to ‘try’ before they pay full price, in a sense. Capturing your client’s attention, then their information and hopefully delivering above expectation to gain loyalty.

2. Make better choices from unbiased sources


When you find yourself confronted with the choice of ten Thai restaurants, making the right choice is tricky. Now LBS applications can help you make these choices with confidence, by presenting the options by vicinity, cuisine, or price filters. Some go one step further and share tips, reviews and ratings. Many help you choose not only the right restaurant but the right dish as well.

Best applications for this: Urbanspoon, Trip Advisor


Applications that integrate this feature: Google Maps, Foursquare

How could businesses take advantage of this feature?

This is where the all too common social media terms of ‘listening’ and ‘influencing’ come into play. Brands must listen to what people are saying about them, learn from the feedback or seek to change people’s negative views by engaging them in conversation. Finding out what people ‘love and loathe’ about them can be vital in promoting their strengths and minimising their weaknesses.

3. Connect with old, meet with current and make new friends 


Sharing the same interests is what friendships are all about, and now actual places act as gathering points. For the social web users, sharing location is sharing – some people share to reinforce their identity or just make others envious. Knowing where your friends are allows for more opportunity to meet and catch-up. This functionality also supports meeting new people, finding out who else has checked in at the same place, so you can read their profiles and possibly gain an angle for your introduction, be it for either personal or professional reasons.

Best applications for this: Facebook Places, Britekite, Foursquare

How could businesses take advantage of this feature?

Unlock the viral effect by having someone check in or share their experience in some way when visiting your business. Motivate people to take pictures and ‘check in’ to alert their current personal and professional networks. The very act can also act as a valuable measurement tool to track the success of a campaign or the popularity of an event. If you have created an online community around your brand, this is a perfect way to bring your brand constituents together in the real world.

4. Turn the real world into a game


If your brand isn’t the sort to offer discounts, then creating value through play may be just the answer you’re looking for. If you can’t reward customers with money (or you need to offer them something that money can buy) reward them with an engaging experience, based on what you know they’re interested in. You could send consumers on a scavenger hunt to ‘check-in’ at key brand touchpoints such as retail stores or billboards. You could create a challenge that involved visiting certain places, checking in, and asking them to share it on their Facebook profile.

Best applications to do this: Foursquare, Scvnger , Gowalla

How could businesses take advantage of this feature?

Different people game in different ways, while some may love finding secret locations and uncovering treasures, others may need more intellectual puzzles that could challenge their knowledge or problem solving abilities.

Entertaining people through any sort of game, be it cerebral or pure fun extends your brand’s experience into new frontiers. Creating rewards that have a social value is the Holy Grail – because they cost nothing and are viral by their very nature, and your clients will love you for showing them a good time.

The Barriers of Fear: Privacy and Geotracking

Other than their confidence with new technology, the main barrier to using LBS is a discomfort with sharing information. In a previous issue of Digital Pulse, we found that privacy concerns are generational – and that is no different in this case. Obviously, people are more comfortable with their friends, but less so with strangers and businesses.

People are naturally uncomfortable with giving away information, especially when it involves their physical location. The fear of this will decrease once there is a better understanding of the technology and a far wider circle of regular users. One implication of this technology is that data about a subscriber’s location and historical movements is owned and controlled by the network operators, including mobile carriers and mobile content providers.

By combining GIS technology with a global positioning system (GPS) and a radio transmitter and receiver, someone easily can monitor your movements with or without your knowledge. While this may seem very ’big brother’, there are benefits to being able to track someone’s movements such as locating a loved one or getting found, in an emergency, without making a call.

What to do

1. Own your location – DO IT NOW

First thing is to make sure that you own your location on Google Maps. If you have already, well done. If not. Visit this page http://bit.ly/fmZq6k

It also helps to write a description that contains a simple detail of your business with all your keywords. Linking it to your website will also make you more ‘searchable’ in Google, and give people better information. Doing this will allow you to have control over your location, and in turn, allow you to see who searches and what reviews and ratings they are giving you

2. Take LBS seriously, it’s going to be billion-dollar information business

According to research firm Strategy Analytics “Location-based services are expected to bring in $10 billion in revenue by 2016.” The biggest chunk, just over 50 percent, will come from location-based search advertising.

3. Put their minds at ease with a clear privacy statement

As we discovered, people are generally uncomfortable with the whole idea of disclosing their location. Having a clear privacy statement and explanation on how the information will (and will not) be used is important.

4. Create points of interest and unlock the rewards of knowledge

The History Channel used Foursquare within America to inform people checking in on the historical facts about that place. As an example, app users visiting the Victory Gardens Biograph Theater in Chicago will discover that infamous bank robber John Dillinger was shot to death there by federal agents when leaving a movie in 1934. Or, users who check-in to St. Paul’s Chapel in downtown New York City will learn that George Washington worshipped there on his Inauguration Day in 1789.

5. Start thinking about how your brand can engage with gaming

The opportunity to create “a gaming layer of the real world”, to quote the creator of Gowalla, is a massive opportunity to make marketing communication more experiential and build deeper connections with clients. Nike has managed to marry the concepts of their brand, customer interests and gaming magically in an application they call Nike+ click below to watch the video.