Initial Research: Gowalla, Brightkite, & Foursquare Location Based Mobile Services & Marketing/Advertising Uses Thereof

All three services rely on users "checking in" to physical locations where (depending on service) they can find other users, append data (tips, posts, pictures, etc.) and earn points. Gowalla and Foursquare have reward systems in place whereby users earn "badges" or "pins" or titles (such as "mayor"). Badges, pins, titles and points are so far not officially redeemable for anything, but business are beginning to create incentives/rewards for top users to check in. Brightkite is less reward focused, but recently launched the nation's first augmented reality ad campaign. Current marketing uses in Foursquare include branded badges (earned with a certain # of checkins at given locations, showing badge may result in a special gift or experience) or rewards for mayors (mayors are top location visitors). In November 09 Pepsi sponsored the NYC leaderboard to raise $$ for a non-profit. Leaderboards show top activity in a given market. At the time foursquare users in NYC generated some 150,000 points on the leaderboard. Foursquare also allows TIPS to be included in location info, these tips could be sale items or other current specials. Gowalla has no such feature, though it does feature a type of virtual gifting that could be useful. Possible issue: Foursquare relies on user input for physical address location. People game the system by entering addresses they're not actually at, thereby claiming false points/mayorships and creating user outrage. Gowalla locations are GPS based, this makes it easier to check-in, and you can't cheat on your location. It also allows virtual goods to be left or "dropped" at locations, and then picked up by others. Histories attach to these items (user x dropped item z here yesterday). Possible business uses include scenarios such as: Starbucks pays Gowalla X dollars to create a (R)ed item you can only pick up at a Starbucks on Y day. Gowalla sends out an announcement to its’ users, and then everyone goes to Starbucks. Gowalla offers "pins" instead of Foursquare's "badges"...presumably branded pins could be produced...how would this differ from a virtual good? Pins would live with a user as long as they had their account and wouldn't be spent or dropped. Foursquare has more WOM virality, more discussion/updates via twitter for ex. and is the darling of the SXSW crowd (FWIW), but many seem to think the Gowalla user interface is better (both services are used almost exclusively on iphones, though android apps exist with others in the pipeline, notably for BB) If one of these services was used for a temporary event/location it would be smart to move users/the experience to a local, more permanent spot when the temporary event closes. Then there's Brightkite...who recently launched the US's first AR (augmented reality) ad campaign with Best Buy. Unclear how this works within Brightkite's interface...Brightkite is working with Layar, which lets users see posts and comments thru their phone cameras overlaid on real world landmarks. Brightkite seems primarily geared to social networking, with location based photo and text posting, and none of the game play or potential marketing elements of Gowalla and Foursquare (with the exception of that AR ad play of course...) These services tie the link between digital and offline: Unlike a Facebook fan, you actually know when a Gowalla or Foursquare user has entered your store or other target location (unless they're cheating of course...) Foursquare (and presumably Gowalla) are beginning to mine user data on behalf of brand marketers. Interesting articles on the space include: Techcrunch: Gowalla business models Pete Cashmore on Foursquare Brightkite's AR solution MarketingVOX on Brightkite and AR