Location Based Services: Marketing Euphoria or Building Block?

TOPIC QUESTIONS

Q1) Will location based social networks (LBS) lead to real revenue gains for large brands?

Q2) Will the future user base of location based social network (LBS) look more like Twitter or Facebook?

Q3) What is the most significant challenge that locations based social networks (LBS) face?

Event Details

Event Date:
2010-06-01
Event Time:
12PM - 1 PM EST

Participants:
64
Tweets:
753

Embed:

Moderator

Jason Keath

twitter: @jakrose

web: jasonkeath.com

BIO: Jason Keath is the Founder of Social Fresh, a Social Media Conference company. Jason has been featured as an authority on social media in the NY Times, Yahoo News, and BizJournals.com and blogs on the intersection of social media and event planning on Mashable.com. He has consulted with some of the largest advertising agencies in the country, Fortune 500 companies, and major eCommerce websites. Jason is an entrepreneur, event organizer, social ...more

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I look forward to discussing LBS, foursquare, etc. today at 9 AM PT on #sm62 w/ @jakrose, Come join the fun!
Posted by: @andrewmueller - 06/01/2010 11:46:01 AM
RT @andrewmueller: I look forward to discussing LBS, foursquare, etc. today at 9 AM PT on #sm62 w/ @jakrose, Come join the fun!
Posted by: @KellyOlexa - 06/01/2010 11:49:02 AM
Agree! RT @andrewmueller: I look forward to discussing LBS, foursquare, etc. today at 9 AM PT on #sm62 w/ @jakrose, Come join the fun!
Posted by: @Marc_Meyer - 06/01/2010 11:49:02 AM
RT @jasonbreed: 10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for an overview #sm62
Posted by: @Marc_Meyer - 06/01/2010 11:53:01 AM
RT @jakrose: Less than one hour from the 12pm Twitter chat on Foursquare, Gowalla. Are they for real? #sm62
Posted by: @SparkfireDesign - 06/01/2010 11:53:02 AM
10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for an overview. follow along on #sm62
Posted by: @jasonbreed - 06/01/2010 11:53:02 AM
RT @jasonbreed: 10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for an overview #sm62
Posted by: @Marc_Meyer - 06/01/2010 11:54:03 AM
The first question for #sm62 is a doozie. We need to challenge ourselves in how we're thinking about Foursquare et all
Posted by: @jakrose - 06/01/2010 11:56:01 AM
I'm looking forward to @jakrose's chat on Location Based Services. http://hashtagsocialmedia.com #sm62
Posted by: @jodiontheweb - 06/01/2010 11:58:01 AM
RT @jasonbreed: 10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for an overview. follow along on #sm62
Posted by: @eamcc - 06/01/2010 11:58:01 AM
RT @Marc_Meyer: RT @jasonbreed: 10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for ovrview #sm62
Posted by: @ckieff - 06/01/2010 11:59:01 AM
Going to join the location-based #socialmedia chat with @jakrose today #sm62. We may be NC only but we get it :)
Posted by: @triout - 06/01/2010 12:01:01 PM
@jakrose I agree and Friday wrote about how Foursquare may be a distraction for business http://bit.ly/9LK8DA #sm62
Posted by: @andrewmueller - 06/01/2010 12:01:01 PM
OK, so let's get the Location Based Services Twitter chat on. Remember to try to bring things back to business cases #sm62
Posted by: @jakrose - 06/01/2010 12:01:01 PM
RT @jasonbreed: 10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for an overview. follow along on #sm62
Posted by: @CraigElimeliah - 06/01/2010 12:02:04 PM
for those who R new. this is 1 hr on topic of LBS today w/@jakrose hosting. follow #sm62 on fav Twitter client or visit http://bit.ly/QS8cE
Posted by: @jasonbreed - 06/01/2010 12:02:04 PM
Q1 It seems that LBS can certainly ehannce visability but does anyone have any case studies show increase to bottom line? #sm62
Posted by: @andrewmueller - 06/01/2010 12:02:05 PM
Q1 RT @jakrose: Question 1: Will location based services (LBS) lead to real revenue gains for large brands? #sm62
Posted by: @jasonbreed - 06/01/2010 12:03:04 PM
Question 1: Will location based services (LBS) lead to real revenue gains for large brands? #SM62
Posted by: @jakrose - 06/01/2010 12:03:04 PM
RT @jasonbreed: for those who R new. this is 1 hr on topic of LBS today w/@jakrose hosting. follow #sm62 or visit http://bit.ly/QS8cE
Posted by: @jakrose - 06/01/2010 12:03:04 PM
RT @jasonbreed: 10 mins from #socialmedia chat w/@jakrose on Location Based Srvices. http://bit.ly/rExdH for an overview. follow along on #sm62
Posted by: @CraigElimeliah - 06/01/2010 12:03:04 PM
for those who R new. this is 1 hr on topic of LBS today w/@jakrose hosting. follow #sm62 on fav Twitter client or visit http://bit.ly/QS8cE
Posted by: @jasonbreed - 06/01/2010 12:03:04 PM
@jakrose Q1: I think it's a matter of 'when' vs 'if.' And 'how.' It certainly looks like we'll see a lot more LBS in the future #sm62
Posted by: @J_Fuji - 06/01/2010 12:04:01 PM
#sm62 Excited to join the #sm62 forum on Location Based Services...
Posted by: @parler_PR - 06/01/2010 12:04:02 PM
Jumping into #sm62, an hour on Location based services.
Posted by: @nigellegg - 06/01/2010 12:04:02 PM
RT @jasonbreed: Q1 RT @jakrose: Question 1: Will location based services (LBS) lead to real revenue gains for large brands? #sm62
Posted by: @Marc_Meyer - 06/01/2010 12:04:02 PM
#SM62 Q1: Not yet, but they're definitely on track to at least drive small revenue bumps. Just look at what Starbucks is doing.
Posted by: @CoryOBrien - 06/01/2010 12:05:04 PM
Joining #sm62 until a conference call starts! Interested in views on location-based services.
Posted by: @BlakeGroup - 06/01/2010 12:05:04 PM
over time, if LBS increases reach + accessibility + is aligned w/ Brand strategy it should translate to the bottom line #sm62
Posted by: @andrewmueller - 06/01/2010 12:05:04 PM
@J_Fuji I agree that we'll see it but... #sm62
Posted by: @Marc_Meyer - 06/01/2010 12:05:05 PM
Not sure of value for large brands (how defined?) but certainly good for food & drink co's. #sm62
Posted by: @nigellegg - 06/01/2010 12:05:05 PM
@jakrose Yes location based services can lead to real revenue for brands if they provide the right value & use the data for research #sm62
Posted by: @waynesutton - 06/01/2010 12:05:05 PM
@jakrose Q1: I think it's a matter of 'when' vs 'if.' And 'how.' It certainly looks like we'll see a lot more LBS in the future #sm62
Posted by: @J_Fuji - 06/01/2010 12:05:05 PM
LBS are very consumer oriented. gaming is mantra. businesses need to step out & innovate around their org. sqr peg, round hole #sm62
Posted by: @jasonbreed - 06/01/2010 12:06:02 PM
Dell's $3MM via Twitter in '09 isn't real revenue from their point of view. Real revenue for a large brand is very high bar to jump. #sm62
Posted by: @ckieff - 06/01/2010 12:06:02 PM
re: Q1 @jakrose At this point I see it as being more relevant for smaller brands/local businesses. #sm62
Posted by: @jodiontheweb - 06/01/2010 12:06:03 PM
@nigellegg I I'm not sure that it is good for food and drink companies, as it might take their eyes off the prize #sm62
Posted by: @andrewmueller - 06/01/2010 12:06:03 PM
LBS can bring unique brand loyalty short term; revenue gen longer-term play #sm62
Posted by: @iMediaMichelle - 06/01/2010 12:06:03 PM
About to join #sm62 chat about location based services sorry for the blast. To join us, use #sm62
Posted by: @klequoc - 06/01/2010 12:06:03 PM
@j_fuji so you think real revenue is just a matter of time and a matter of how? where do you see possible how's? #sm62
Posted by: @jakrose - 06/01/2010 12:06:03 PM
Just joined #sm62
Posted by: @incslinger - 06/01/2010 12:06:03 PM
#SM62 Q1: Not yet, but they're definitely on track to at least drive small revenue bumps. Just look at what Starbucks is doing.
Posted by: @CoryOBrien - 06/01/2010 12:06:03 PM
Joining #sm62 until a conference call starts! Interested in views on location-based services.
Posted by: @BlakeGroup - 06/01/2010 12:06:03 PM
over time, if LBS increases reach + accessibility + is aligned w/ Brand strategy it should translate to the bottom line #sm62
Posted by: @andrewmueller - 06/01/2010 12:06:03 PM
RT @waynesutton: @jakrose Yes location based services can lead to real revenue for brands if they provide the right value & use the data for research #sm62
Posted by: @steveplunkett - 06/01/2010 12:07:04 PM
@jakrose Also proper incentive alignment. 4sq "mayorship" rewards are brilliant, IMO. Just needs some tweaking to prevent abuse #sm62
Posted by: @J_Fuji - 06/01/2010 12:07:04 PM
A1: Yes. When? Different story. Agree w/ @iMediaMichelle that it's a loyalty play first in most cases. #sm62
Posted by: @30lines - 06/01/2010 12:07:04 PM
@nigellegg meaning that they should be treating every one of their customers like Mayor #sm62
Posted by: @andrewmueller - 06/01/2010 12:07:04 PM
@waynesutton so which do you think is the bigger opportunity? the value exchange or the research data? #sm62
Posted by: @jakrose - 06/01/2010 12:07:04 PM
@jakrose #sm62 Q1: I think so, depending on type of company and how they use it
Posted by: @JasonPeck - 06/01/2010 12:07:04 PM

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Moderator

The first question for #sm62 is a doozie. We need to challenge ourselves in how we're thinking about Foursquare et all

OK, so let's get the Location Based Services Twitter chat on. Remember to try to bring things back to business cases #sm62

Question 1: Will location based services (LBS) lead to real revenue gains for large brands? #SM62

RT @jasonbreed: for those who R new. this is 1 hr on topic of LBS today w/@jakrose hosting. follow #sm62 or visit http://bit.ly/QS8cE

@j_fuji so you think real revenue is just a matter of time and a matter of how? where do you see possible how's? #sm62

@waynesutton so which do you think is the bigger opportunity? the value exchange or the research data? #sm62

@JasonPeck so you see some companies better suited? which ones? #sm62

@TaylorBarr yeah, it does seem like $$ in the pocket is at the root of most LBS plays right now #sm62

@J_Fuji I agree. creaitivity and not just passing along coupon is a good start #sm62

@J_Fuji yes. the rewards for your best customers does create immediate brand champions. word of mouth wins #sm62

RT @triout: the revenue gains needs to be measured by the how using LBS and ROI of time invested of the promotion by brands #sm62

@greggvm good question. for some the value is their friends location or the game, independant of the venue's role #sm62

@JasonFalls do you think the current use cases are doing it in meaningful ways? #sm62

@jsandford so affinity because of a more constant relationship? continued value? #sm62

@lucretiapruitt so the brick and mortar franchises are the focus for you? #sm62

@JasonPeck I like that thought, but for example? #sm62

RT @jodiontheweb Q1 @jakrose At this point I see it as being more relevant for smaller brands/local businesses. #sm62

@jodiontheweb so local has more to gain because it is a smaller community? #sm62

@jsandford I agree. the top of mind is then generated from a relationship and not an ad campaign #sm62

@lucretiapruitt so the brick and mortar franchises are the focus for you? #sm62

@waynesutton because of the time committment you mean? to actually build a relationship? #sm62

@JasonPeck yes, if not MLB will likely have it soon. They lead well like Starbucks. Great large brand use cases #sm62

Next Question, #2: Will the future user base of location based services (LBS) look more like Twitter or Facebook? #sm62

@lucretiapruitt great point. that could really lift the level of gameplay #sm62

RT @lucretiapruitt: @jakrose None of the LBS have added functions to let users know how many pts they need to become mayor #sm62

@jodiontheweb it definitely makes sense. the relationship is more tactile on the local level #sm62

@30lines very cool app. Seems like that is an obvious addin for 4S #sm62

RT @lucretiapruitt: @jakrose - until folks know their standings, rewarding "best" customer is nebulous target #sm62

@lucretiapruitt agreed. unless you are already the mayor. Then you are happy either way #sm62

@parler_PR but currently the audience is more like Twitter, would you agree? How do they bridge that gap? how do they scale? #sm62

@ckieff agreed. involving more people = more brand champions. not sure what the right system is though #sm62

Question #2: Will the future user base of location based services (LBS) look more like Twitter or Facebook? #sm62 and why?

@JasonPeck there are definitely use cases happening where people are starting to check in to virtual places or not places at all #sm62

@30lines that would be cool. One of the Golden Coral's in Raleigh, NC is doing something like that #sm62

@jsandford so you see LBS scaling to the size of one of the larger social networks? interesting #sm62

@waynesutton so how can they create that? is the mayor system flawed? #sm62

@sbolen because you want it to remain small or light? #sm62

@ckieff that makes sense. I think the game element is gone then. Is the game important? #sm62

RT @waynesutton: @jakrose the future of LBS will look more like Facebook b/c it needs more than an activity stream. needs comm/content #sm62

@jsandford so then LBS becomes more of a background data stream and less of its own network like on Foursquare? #sm62

RT @J_Fuji: @jakrose The game is important in that it carries with it powerful incentives… but are they the right incentives? #sm62

RT @ckieff: @jakrose IMO, deals, sales and coupons will trump games any day for LBS. #sm62

@nigellegg so currently the reason to use LBS is not compelling enough for mainstream? #sm62

@jsandford the location data is a massive opportunity if scaled. do you think mainstream users will buy in? #sm62

@summerjoy so the future of LBS looks more like Yelp? I think that is a good point. The review data is important #sm62

@30lines what about the connection value? finding your friends? #sm62

@andrewmueller so the mayor system is just the simplest game element? the future will involve more people? engage them? #sm62

Question #3 (final): What is the most significant challenge that locations based servcies (LBS) face? #sm62

@mobienthusiast maybe. it would be interesting to see the demographics. I think it is definitely a younger audience #sm62

@30lines finding where there friends are at while out and about? not sure that is happening anywhere #sm62

@J_Fuji I have seen local startups trying things like this. It has possibilities. Foursquare already has editors/admins #sm62

Question #3 (final): What is the most significant challenge that locations based servcies (LBS) face? #sm62

@mobienthusiast maybe. it would be interesting to see the demographics. I think it is definitely a younger audience #sm62

@BlakeGroup thanks for joining =) #sm62

@techguerilla as a technical challenge or a trust issue? #sm62

@andrewmueller that in itself is a highly valuable business model many have pursued. #sm62

RT @waynesutton: The gaming aspect of LBS is a start to get users to compete but to keep them, must add value to the game #sm62

@ckieff well yes, and via phone calls, but to see it in a snapshot is a completely different scale of information, no? #sm62

@BlakeGroup thanks for joining =) #sm62

@techguerilla as a technical challenge or a trust issue? #sm62

@andrewmueller that in itself is a highly valuable business model many have pursued. #sm62

RT @waynesutton: The gaming aspect of LBS is a start to get users to compete but to keep them, must add value to the game #sm62

@ckieff well yes, and via phone calls, but to see it in a snapshot is a completely different scale of information, no? #sm62

@ckieff that I do not know. that is one of the major questions. will mainstream adopt. tech and privacy are the issues I see #sm62

RT @sbolen LBS challenge is Scaling a larger user base and keeping it simple enough for the lowest common denominator #sm62

@techguerilla so background data. much like a synced mobile phone book? #sm62

RT @waynesutton the most significant challenge for LBS: Trust, user adoption, partnerships, analytics, showing value & GPS #sm62

@waynesutton so 6 major challenges? =) sounds like a blog post #sm62

@jsandford getting people to use it is the issue. What is the biggest barrier there? #sm62

@techguerilla I hope so. I want to see the tech evolve in that direction as well #sm62

@lawpower agreed. tech is a barrier. smart phones in general are not everywhere and then there is an app to get #sm62

@techguerilla I agree that on some level the passive coupon will be a big part of it #sm62

@techguerilla and if you want to use it to connect with people, find locations? is that not active use? #sm62

@techguerilla that is what Google Lattitude is. The potential has not been seen yet though #sm62

@lucretiapruitt well Google Lattitude already passively adds your location, so it is on the verge. but are ppl ready for it? #sm62

@techguerilla Yeah, I cant see that being an issue #sm62

@lawpower yeah, true. Maybe in countries where smart phones are not as common that would take hold #sm62

@jsandford good point. the active check in in itself is a barrier. #sm62

@techguerilla well Google is already puting ads on maps. they have the opportunity here #sm62

@lucretiapruitt haha. agreed. I think there is a major trust issue there. Foursquare will have to go through its Facebook bumbs #sm62

@waynesutton had two use cases on the #sofresh blog today for MyTown. They have more users than Foursquare and all on the iphone #sm62

Ok, guys, feel free to the keep the conversation going, but thats a wrap. Thanks to everyone. Archive: hashtagsocialmedia.com/event62 #sm62

@kseniacoffman and of course if people are not ok with it. they simply avoid it. #sm62

@kseniacoffman you have to be ok with that option ultimately. same with email. same with anything on the web #sm62

@zaibatsu thanks for your thoughts on Mytown and LBS during the #sm62 chat man. good to hear your thoughts

@waynesutton haha. nice. end a LBS chat with an LBS special #sm62

@LucretiaPruitt thanks Lucretia, have a great day #sm63 #sm62