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As we reflect upon the year’s events , let’s talk once again about Geolocation, not as a new phenomenon but as a summary of the evolution of this service in 2010.

Among other reasons already mentioned in a previous blog post, the fact that more and more mobile devices have GPS is one of the major causes of the course taken by geolocation service in the last months of 2010.

Increased use of this service is one of the most remarkable effects: According to an article published by Mashable  last week, Foursquare, the most popular geolocation platform, has 5 million users, increasing its user base by a factor of 10 in just nine months.

The act of sharing the location has changed, it also added tastes of people, their opinions about visited places, shopping recommendations, vacation tips or tips for a nice dinner at a new and romantic restaurant.

Users use geolocation as a source of information, a service which not only encompasses “where” but also “how”, “when” and “who”.

Beyond sharing people locations, these services have also been designed to help businesses attract more customers to their stores since most of them help employers encourage engagement and promote virtual social interaction around a physical location. Slowly, companies, especially restaurants, are joining geolocation sites to implement different marketing actions, so far, only experiments waiting for the feedback from the public.

A good example is the campaign that Telepizza made in Foursquare, an action fully focused on marketing objectives.

Telepizza offered discounts on pizzas to people who did check-in at local or nearby restaurants.

What did Telepizza achieve?

1. Geo-segmentation: users who checked-in had a very high probability of being from the same neighborhood of Telepizza

2. Behavioral Segmentation: Telepizza marketing reached people who use to commonly  go out to dinner

3. Clients loyalty: Telepizza rewards every time you eat there

4. Channels desaturation: a person who buys in the store is a person who does not use the phone or the website of that store.

5. Even… stealing customers! If when I go into a store and do my check-in, I get a better deal for a pizza at another location nearby, of course I will think of leaving this restaurant and make my way to Telepizza.

So far we have appointed two players linked to the evolution of geolocation in 2010: users and businesses. The third character on stage is the developer: On the one hand, web sites are quick to offer and incorporate geolocation services into their interfaces. On the other hand, applications which include geolocation are multiplying with the same speed.

Foursquare knows that. Therefore, it has an API that allows developers to build their ideas on the foursquare platform. Developers use the API to build new check-in functionality, cool games, and interesting data visualizations.

SimpleGeo deserves special mention here.

SimpleGeo defines itself as a service which makes it easy for developers to create location-aware applications. SimpleGeo provides relevant contextual information such as geographic boundaries, weather, and demographics for a specific location. It offers a free database of business listings and points of interest (POIs) that enables real-time community collaboration. It provides api clients in Objective-C, Android, Java, Python.

According to TechCrunch , ” SimpleGeo wants to help make business data freely available for anyone to use, which would be a gigantic shift in how location … apps could be built more cheaply.

Thus, throughout this year, geolocation has become increasingly popular among ordinary users, being an attractive market niche for companies and developers.

As mobile technology continues to impose the idea of being “always connected”, geolocation will gain strength and prominence as a new form of social interaction.

In a previous blog post we tell you about another interesting and new use of geolocation, connected to art, which is still developing and has remained outside the commercial world.

Geolocation is here to stay. It has been adopted by the major players in the industry and is carving an independent position in the social media market. With products such as foursquare, mytown and gowalla leading the race, we’re sure to see a lot more competition in the space. So far facebook is the only one of the big social networks that is taking geolocation seriously by launching places, a service within facebook that allows people to check in to physical locations and to browse who’s around.  This is just the beginning of the geo-location fight that is sure to heat up in the upcoming months.

In the meantime, here are seven reasons why geolocation is here to stay.
  1. Geolocation has become a fashion and cultural trend beyond early adopters.
  2. Companies have the opportunity to advertise their products and services directly and selectively.
  3. Social networks are rushing to adapt its functionality to also provide geolocation services, though some half-heartedly
  4. More and more people have GPS-enabled devices.
  5. The smartphone market is only getting bigger around the world.
  6. People’s social circle  is becoming wider and larger.
  7. Social networks are increasingly oriented towards mobile devices.

Let’s start by defining geo-location. Geo-location is the practice of associating a digital resource with a physical location. Digital resources can be photos, videos, texts. Location information is calculated according to latitude and longitude coordinates to mark a specific location anywhere in the world. Geo-location networks and services are fast becoming a necessary tool for all smartphone users, who can not only find the location of a friend, but also physical locations such as pharmacies in their neighbourhood, parks, libraries.

So many services to choose from. Here’s a comparison of the most popular geolocation enabled services:

A comparison of geolocation applications and their features:

Geo-Location Feature Comparison

Geo-Location Feature Comparison

Why does geolocation work?

Let’s take foursquare. Foursquare is one of the most popular geo-location service so far. Its secret is to combine social networking with geo-location and a competitive game with a good way to advertise effectively. Foursquare’s key to success is that it converts users’ activities in a game. Every time that someone visits a store they get closer to becoming the mayor of that location which in turn can bring them preferential treatment at the location.

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