The rumours have been circulating for a while now that Facebook would launch a service to rival rising social media star Foursquare, so the announcement that they’ll be launching Places was less than surprising.
The service will allow users to share where they are while on the move. The service is currently restricted to the US, however the company is hoping to extend this to its 500 million members as soon as possible.
Places will also allow you to tag your friends with your current location, as long as they’ve also ‘checked-in’ at the same location.
It’s an interesting development for Facebook, as it allows the site to publish real-time activities of its members, rather than simply the short updates and photos that are generally published after the event. It’ll also provide them with a lot more information on your general activities outside of work and home.
Vice president of product Chris Cox told BBC News “This third place is the one we end up talking about a lot. I went to a movie, I saw a band, I went to a bar. So much of the interesting stuff in our lives happens in this small amount of time and we want to make that come alive.”
Foursquare offers a similar service, offering users the ability to gain points and virtual badges after checking in to certain venues. Some quick-thinking companies have seen the potential for advertising and promotional purposes with the services, particularly as it provides an excellent opportunity for targeting customers when they’re actually near the venue. Domino’s Pizza came up with the concept of offering a free pizza to the ‘Mayor’ of each store, which they claim increased their profits significantly and expanded their current online community.
Foursquare and Facebook Places also expands on the theory that community recommendations are much more successful than standard advertising. If your friends love something and you see them visiting often, you’re more likely to visit too, right?
The main criticism of location-based services is the concern over privacy, and Facebook has been quick to ensure that users have as much access to their privacy settings as possible.
So, are these new location-based services the future for targeted and community-based advertising?
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