DISQUS

VentureBeat: Why won’t location-based networks grow?

  • JMX · 1 month ago
    I think it's still considered too intrusive for general socializing (like going to a bar you didn't ask or want to go to), and is more likened to "hookup" sites (especially when you see who is most visible on these networks at times). It can also be too much for even a close group of friends... people are still creeped out by constant tracking apps as it is.

    I think ultimately this technology will end up mostly being used for targeted opt-in advertising/suggestion shopping, families (tracking children, keep in the loop with spouse, etc.) rather than general socializing. The first step is getting everyone to warm up to the technology as it stands today, a "go-to" and recognized brand to welcome the masses (I think Loopt has this locked, though), and then to refine the privacy-to-socializing balancing options that would allow sufficient control -- only then would it be widely accepted.

    Also, the up-to-the-minute accuracy of price matching, events, etc. is still questionable since most of this local advertising output is currently still done on media that is more static or a few days behind (evites, daily sales, circulars, etc.). For this technology to be most useful, merchants and service providers would need to be updating their deals by the hour (on top of tracking their customers at the same frequency), and those kinds of techniques just haven't reached mainstream local spots yet.
  • Quintin Jenkins · 1 month ago
    Great info on networking with computer based applications. Thanks!
  • sfrocks · 1 month ago
    @JMX,

    Re: the up-to-the-minute accuracy of price matching, events, etc. is still questionable since most of
    this local advertising output is currently still done on media that is more static or a few days behind:

    Yes, but shouldn't they become more dynamic? It's a win win.. how many seats in a lot of movies go unfilled? Several hundreds a day!

    Re: and those kinds of techniques just haven't reached mainstream local spots yet.

    Technology is capable already.. airlines are doing it already. If you sell the right value proposition to local spots (hey we will make you this much more money, for example, by selling last minute unfilled seats), they can be influenced to join in..
  • Hesper · 1 month ago
    One reason might be that you can barely not drop a call on most carriers -- forget about pervasive intensive data apps. Once AT&T and Verizon and Sprint get their act together on data I think things will be very different. Comparing adoption of facebook on PC vs. something on mobile phones doesn't seem appropriate. how about something else mobile that uses data and doesn't have a 150m existing customers on PC vs. something on mobile. Mobile is coming, and the curve is very steep.
  • terencereis · 1 month ago
    The reasons you listed are not exclusive to location-based networks, but common to all social networks. My view is that participation in these networks generate transaction costs that exceed the benefits promised by adding location, therefore hampering the network effect.
  • cease · 1 month ago
    i think you're missing probably the most popular location based application now. its Yelp. its by far the application i use the most when i'm in an area looking for a restaurant to eat at. Its not so much as social as the ones you listed, but probably the best IMO.
  • CulturalEngineer · 1 month ago
    I suppose I'm naive generally and especially about this industry... But my old cultural anthropology background leads me to what I've believe is the catalyst:
    Politics and the political activist community (on whatever side they may be and even though the activist community is small overall).

    Seems to take a while to sink in but I'm finding some are seeing the catalyzation potential.

    While the commercial aspect is vital and valuable...
    It'll be via it's use in "commons" activities that catalyzes it's potential in the commercial world.

    The Individually-Controlled / Commons-Dedicated Account

    Chagora Blog and PowerPoint "Fixing Big!" at http://culturalengineer.blogspot.com
    Demo at http://www.Chagora.com

    Will be happy to share why this small community can drag everyone else in for better business opportunities... and better the community at the same time!

    Whenever anyone wants to listen...
  • davidcalabrese · 1 month ago
    Location-based value is all about content. Not necessarily UGC, but relevant content that, to sfrocks point, is not available through RSS or any other feeds.

    This is a typical marketer and brand response, we can therefore we shall, not "what would be valuable to a user, what would be valuable to a business". They never stop to ask those questions... ok almost never.

    Valuable and unique local content which means you can't launch an iPhone app with an eventful feed and be unique and useful, easy and focused time-based experiences which means you can't be a yellow pages with LBS...

    When someone stops trying to throw something up there that is quick and easy and takes the time to develop a real value proposition for the consumer and the business that is ONLY available through mobile phones the network will grow. Until then, cool today - dead pool tomorrow...
  • Leo Fish · 1 month ago
    Ovi Lifecasting on my Nokia N97 with location posts directly to Facebook is insanely cool
  • zbaum · 1 month ago
    Great overview. As some one who is involved with this industry, I thing that the two main reason for why this industry in not picking up as fast as is should have are:
    1. Interoperability - you need to attack all different platforms in order for users to be able to meet their friends on these services. Right now, as Saad mention, any given user can find only a handful of friends when signing for the above services.
    Maybe more importantly,
    2. Privacy issues need to be solved for LBS to be successful.Sharing status updates on Facebook is very different than sharing real time location information. Facebook itself understand that users require more control over the information that they share (very different from how they started - interesting...) and location based app will understand it as well. Zipano Technologies, a PA-based startup (www.zipano.com) offers a nice approach to this - a privacy layer that allows location based apps to integrate a privacy platform that was developed at Carnegie Mellon University. The platform allows users to better control who they share their info with and showed to result in more users' usage and hence more valuable apps. The merits of this platform are demonstrated using Locaccino (www.zipano.com/locaccino.html) - a location sharing app that runs on Facebook.
  • fittiings · 1 month ago
    very good, thanks very much.
  • Joe Waters · 1 month ago
    I think you're right on about the potential of Foursquare. I recently wrote a post on my blog, Selfishgiving.com, on how businesses, working with causes, could help Foursquare build its membership base. Check it out.

    http://selfishgiving.com/cause-tools/foursquare...

    Joe