Here are six predictions for big changes in the location based services ("LBS") space in 2011.
1.
Location based services gain substantial ground - Foursquare, Gowalla, and Facebook Places will all see substantial user growth and more mainstream adoption as consumers start to see that these offer real value.
Just like services such as Groupon that use social media to bring value to consumers, these services offer the same benefits.
Soon we will see consumers start checking in with greater frequency.
2.
Foursquare remains the clear leader - despite Facebook Places,Foursquare stays at the forefront of the LBS market.
Privacy concerns are the main barrier for Facebook Places.
Consumers identify Foursquare more with location and may not want their check-ins linked with their Facebook account.
If someone checks in with Foursquare they don't have to worry about that being broadcast all over their Facebook wall.
This will play out being to Foursquare's advantage.
3.
Gowalla, SCVNGR, or another smaller LBS platform is acquired by a major technology company - one of these smaller platforms, combined with the larger infrastructure or user base of a firm like Google or Groupon, could pose a big threat in the LBS space.
Smaller platforms are a better target as the acquiring firm doesn't have to pay a premium for users (as they would with foursquare).
4.
Location based marketing becomes a mainstream form of customer engagement - there is a very compelling value for businesses in using LBM through a platform like foursquare as a permission marketing asset.
Once either the user base starts growing or businesses realize the potential of location based services, location based marketing will see a big boom.
5.
There will be a growth in Third-Party location software - we are already seeing it with Flicksqr, Geotoko, Place Punch, and Placcess - but if Twitter is any indicator, location platforms will start to see a big proliferation of startups focused on using location platforms to engage customers and refining the location space from a business user's perspective.
6.
Digital wallets merge with location services - We will see a big boost in digital wallet technology and some form of that merging with LBS.
Shopkick is already taking things in that direction and several cutting edge start-ups are working toward this goal as well.
1.
Location based services gain substantial ground - Foursquare, Gowalla, and Facebook Places will all see substantial user growth and more mainstream adoption as consumers start to see that these offer real value.
Just like services such as Groupon that use social media to bring value to consumers, these services offer the same benefits.
Soon we will see consumers start checking in with greater frequency.
2.
Foursquare remains the clear leader - despite Facebook Places,Foursquare stays at the forefront of the LBS market.
Privacy concerns are the main barrier for Facebook Places.
Consumers identify Foursquare more with location and may not want their check-ins linked with their Facebook account.
If someone checks in with Foursquare they don't have to worry about that being broadcast all over their Facebook wall.
This will play out being to Foursquare's advantage.
3.
Gowalla, SCVNGR, or another smaller LBS platform is acquired by a major technology company - one of these smaller platforms, combined with the larger infrastructure or user base of a firm like Google or Groupon, could pose a big threat in the LBS space.
Smaller platforms are a better target as the acquiring firm doesn't have to pay a premium for users (as they would with foursquare).
4.
Location based marketing becomes a mainstream form of customer engagement - there is a very compelling value for businesses in using LBM through a platform like foursquare as a permission marketing asset.
Once either the user base starts growing or businesses realize the potential of location based services, location based marketing will see a big boom.
5.
There will be a growth in Third-Party location software - we are already seeing it with Flicksqr, Geotoko, Place Punch, and Placcess - but if Twitter is any indicator, location platforms will start to see a big proliferation of startups focused on using location platforms to engage customers and refining the location space from a business user's perspective.
6.
Digital wallets merge with location services - We will see a big boost in digital wallet technology and some form of that merging with LBS.
Shopkick is already taking things in that direction and several cutting edge start-ups are working toward this goal as well.
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