Where Are You Now?
Back in 2002, the engineers at IBM were already talking about location-based services on mobile phones. They envisioned scenarios where you could access information on the go, informing you if there was a traffic jam ahead, or helping you find the location of the nearest bakery. But they were working with WAP (wireless application protocol), which did not end up taking off as expected. Mobile web browsing was slow and the user interface was not ideal for displaying lots of information.
Last week, activation issues aside, the launch of the iPhone 3G and App Store breathed new life into location-based services. According to Matt Dickman at Fleishman-Hillard, the “single most important element of the new iPhone 3G” is GPS. “For the first time ever, GPS will be fully integrated on a user-friendly consumer device,” he wrote. Even more important, developers are also able to create applications using the GPS technology. (Note: old iPhone users can still download 2.0 firmware, but location-based services will use the less accurate tower-assisted AGPS - thanks Jough!)
What this means for social media:
- Mobile social networks may increase in popularity
When Twitter was first launched, I remember thinking it was both creepy and unnecessary for people to know what I was doing at that moment and vice versa. But over time, microblogging sites have evolved into useful communication devices. News stories sometimes break on Twitter before hitting the mainstream media, companies are using Twitter for customer service, and Twitter even helped a student when he was arrested in Egypt.
Similarly, while it may seem creepy to be asked “Where are you now?” the potential for location-based social interaction to take place may later have us wondering how we lived without it. Mobile social networks to check out: Loopt, Brightkite, and Whrrl.
What this means for marketing:
- Higher level of customer engagement with the ability to deliver more relevant, location-specific messages
Another dimension of customer segmentation is now available to marketers – exact current location. An obvious use of this information is to offer an opt-in program to receive coupons for a specific store when the mobile device is within close proximity to the store. Some Asian countries already have such programs in place.
The possibilities are endless. Someone at Duo suggested a store-specific Starbucks application that will alert the store when you are two blocks away. By the time you arrive at that Starbucks, your drink will be ready and waiting for you to pick it up and go.
With 1 million iPhone 3Gs sold in the first weekend and 10 million App Store downloads, it will be exciting to see how the implications of location-based services continue to grow.
