Wednesday, February 03, 2010

Why Foursquare, Location Apps Need 'Old' Media

A new Business Week article finds that location applications like Gowalla, Foursquare and Yelp have limited appeal. For instance, for all the hype around Foursquare, it only has 300,000 registered users. Despite this disappointing adoption rate, I think there is a huge opportunity for media. Blogger Robert Scoble, a managing director at Rackspace Hosting explains the simple value created by location --

"Any time you have a database of people and you know their location, that's valuable to a lot of businesses," Scoble told Business Week.

So, the obvious opportunity is the ability to collect data about users, and the ability to target users based on their favorite haunts, or nearby haunts, etc. The problem -- They lack scale because people don't want to share location or don't see the benefit. So, who better to drive adoption than the 800 lb gorilla -- TV.

Yes, Bravo is working with Foursquare, but isn't local media looking at this? If a local TV station, embedded a service like Foursquare into the fabric of their local programming, they could drive adoption of these LBS, collect valuable data for mining and use that to build new relationships with SMBs in their markets.

No comments: