Good article on LBS services for marketing in Ad Age Digital

by SteveBayle on December 15, 2009

The Future of Geo-tagged Marketing, Now The Location Equation: How a New Breed of Services Like Foursquare, SimpleGeo Are Changing Mobile by Garrick Schmitt is a good overview of several new location-based apps with marketing uses.

I agree with him that Yowza looks like the most interesting one:

YOWZA: Yowza is one of the more interesting upstarts in location-based advertising. Users who download the Yowza app to their iPhones are able to have deals and coupons pushed to them based on their immediate location. Yowza is paperless too — simply let the cashier scan your phone to receive a discount. With big-name retailers like REI, Crate & Barrel, Guitar Center and CB2 on board, Yowza has the potential to completely upend the Sunday circular.

His conclusion seems apt:

Of course, location-based services won’t be all smooth sailing. It’s still early days for geolocation, and privacy issues will certainly come to the fore sooner rather than later. But forward-thinking brands would do well to take note. It won’t be much longer until digital experiences — whether mobile or desktop-based — start reacting to users based on their coordinates. The co-mingling of social media and physical location information is potent stuff, as Foursquare has proven. And just think, Facebook hasn’t even officially entered the arena, yet

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{ 2 comments… read them below or add one }

Giuseppe Taibi December 15, 2009 at 5:18 pm

Great post, Steve! I went to the iTunes page for Yowza!! and found out that, again, this app does not enjoy high ratings among users despite being free. The average is 2 stars over more than 10,000 ratings. The good news is that 10,000 users who rated the app might mean hundred of thousands of users who downloaded the app, validating the public’s appetite for this class of apps. The primary concern of most bad reviews appears to be, again, lack of data. Not enough deals to justify frequent use. Data is bound to play a critical role as differentiator for Verbela’s products.

Steve Bayle December 15, 2009 at 5:21 pm

GT, the interesting question you raise is what is the ratio of reviews to downloads? Have you seen that anywhere? Also of course important, but very app specific is the ratio of downloads to actual repeat usage.

We can certainly learn a lot reading the reviews of apps in the mobile shopping space, you’ve proven that!

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