Twitter knows where you are. Or at least it will soon, when it introduces a feature that lets your followers know where you are when you send a tweet. The announcement that Twitter will soon give users the option to disclose their physical whereabouts kindled debate over the role of location-based services (LBS) in social media and elicited criticism that the tools are an invasion of privacy.
I’ve been trying out a wide range of LBS tools to see for myself whether they’re useful or something to be feared. I’ve used Brightkite; Plazes, which was recently acquired by Nokia; Germany-based Aka Aki, which I like to use in Europe, as well as a series of lesser-known services.
My conclusion after a year of testing is that far from being a threat, sites offering LBS represent vast, unrealized potential to radically transform the way we communicate and stay connected. ABI Research predicts that LBS will generate revenue of more than $14 billion in 2014, from about $2.6 billion this year.
Besides helping us track our location patterns or the nearest Starbucks, these apps collect valuable data about our daily routines and the routines of those closest to us. They track personal tastes in food, fashion, and music so we can receive alerts and location-based notifications. Individual users can use LBS to share relevant information and places with friends. The device maintains a record of our daily routines, and it’s constantly looking for people we know who may be nearby. This added layer of movement and context is much more valuable than what’s available on existing social networks, such as Facebook, that don’t automatically offer location-specific information.
Potential Gold Mine for Marketers
There’s no denying LBS could also become a gold mine for marketers. “Context awareness is critical when you want to buy something, and advertisers get…