On Digital

Irfan Kamal August 25th, 2010

According to Comscore, over 25 million users accessed Facebook via a mobile phone in Jan 2010, a 112% year-over-year increase.

With its initial US-based rollout of Places location functionality on the 30+ million iPhone installed base, Facebook joins Twitter and others in embracing the growing use of smartphones for social networking.

Importantly, this change allows Facebook to expand users’ social graphs beyond such items as friends, product/service affinities and demographics to now include location.

Here are three thoughts on implications for marketers, agencies and social location startups:

Of course, location checkins should help drive impulse and, to some extent, planned purchases. It’s clear that coupons, discounts and other promotions will be important for increasing share of wallet — particularly for the impulse purchases estimated to account for 20+% of consumer spending. Companies like Shopkick are already implementing functionality to enable this, and it’s clearly going to be of value to driving revenue for a wide range of companies.

Checkins will provide new opportunities to build relationships and better understand customers. Less promotional location-driven engagement will be helpful in increasing preference and loyalty. If a user must check into a location manually, they’re either doing so for convenience (e.g. to locate friends or offers nearby) or as self-expression. The latter provides an interesting opportunity for a brand to engage — for example, by providing messaging or advice that’s related to the type of location visited. This also provides an opportunity for B2B brand engagement.

Social network partners may well provide more unique experiences for brands. Much as well-designed social games from companies like Zynga and Playdom have created a powerful draw for Facebook users (consuming ~40% of Facebook user minutes), startups like SCVNGR, Gowalla, Foursquare and Booyah will likely use Facebook graph + location data to create interesting experiences. They’ll have the added opportunity to integrate data across Facebook, Twitter and other non-Facebook smartphone users.

One of the biggest potential issues to consider is user privacy — the current implementation has some issues that have been widely written about. However, in the past Facebook has eventually responded with changes to enable users to manage their privacy in an acceptable way.

Read more about key steps to take in getting started.

Photo credit: Graph, by Librarian by Day

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