Facebook to Geo-Target?

Last September, Facebook was clearly worried about Twitter, and the massive momentum which it had quickly gained.  Facebook, the social media leader was not going to sit back idly while Twitter grew at a rampant pace; they had to respond.

Facebook decided to revamp their home page which included making “mentions” an option in all statuses.  I deemed it: Facebook Twitterizing (see my post Facebook Twitterizes).  Facebook may be in a situation today much like they were last September.

For all of you who don’t look much beyond Facebook, the new social media rage is now location-based social media.  The idea behind these networks is simple, you “check in” to any location via a gps enabled cell phone.  Check ins are possible anywhere that has a physical address: a coffee shop, a department store, a school… you get the idea.  You build a network and can see where your friends frequent, and share tips for different locations around town.

Foursquare, Gowalla, and Yelp have had strong growth the past year and the competition is fierce between the three networks.  Foursquare even added 100,000 users in a ten day period earlier this month.

That is some substantial growth.  You know Facebook is paying attention.

Here’s where location-based social media is so important.  There is a HUGE amount of money on the horizon for this niche.  Geo-targeting is extremely valuable for every business, no matter how small or large.  These social media networks offer huge potential for sending out extremely targeted ads – down to the specific latitude and longitude.  This is the beauty of location-based social media

Imagine, you run a newly opened pizza shop and not many residents know that it exists.  A social network like Foursquare makes it easy to send a digital coupon to those Foursquarers who are within a half mile of your new location.  This will not only give you instant awareness to your target market, but will give the recipient a clear and timed call to action to get patrons in your doors.

There are many reasons why location-based functionality is the next move for Facebook:

• Almost a quarter of Facebook’s traffic comes via mobile devices
• Facebook is historically responsive in adjusting to new competition and new technologies
• The potential ad revenue for these type of networks is almost unlimited

it is safe to say Facebook won’t sit back idly.  Facebook, right now as you read this, is working on their own Geo-location addition to their network.  They’re too smart not to.

Within the next month or two, you will be playing around with Facebook’s new location-based feature which will rival Foursquare and potentially stifle their growth and try to contain them to a niche player.

Facebook did it to Myspace, Twitter and every other network which posed a threat to their dominance.  Expect their retaliation to Foursquare soon.  If not, they’re leaving lots of potential revenue on the table, and leaving the door open for new location based networks to catch on and leave them behind.

Follow Todd on Twitter: http://www.twitter.com/toddliss

Tagged as: @mentions, check-in, facebook, Foursquare, geo-targeting, Gowalla, location-based social media, mobile ad network, networks, small business, targeted ads, tips, twitter, Yelp