Location Based Services Smart for Business

I recently investigated Foursquare, Google Latitude, Zhiing, Yowza and others. I’m not a game guy and definitely don’t use coupons but this mobile presence idea is intriguing to me and should be to you.

In the movie Minority Report Tom Cruise walks by displays that identify him, present a product, and customize the ad with his name. With location-based services what would stop a business from doing this on your smart phone? “Hey Chris, Tony Pizzeria has a new pizza that we think you would like just around the corner from where you are right now.” Also, “Bill with XYZ company is already there eating. Isn’t that a Linkedin Contact you wanted to connect with?”

It doesn’t take a business genius to see that getting relevant information to you as quickly as possible is pure marketing gold.

Location-Based Services Defined
For those like me that had no idea what this technology was, wikipedia defines location-based service (LBS) as information and entertainment service, accessible with mobile devices through the mobile network and utilizing the ability to make use of the geographical position of the mobile.

LBS services can be used in a variety of contexts, such as health, work, personal life, etc.
LBS services include services to identify a location of a person or object, such as discovering the nearest banking cash machine or the whereabouts of a friend or employee.
LBS services include parcel tracking and vehicle tracking services.
LBS can include mobile commerce when taking the form of coupons or advertising directed at customers based on their current location. They include personalized weather services and even location-based games. They are an example of telecommunication convergence. The key result of convergence at a macro-business level is the merger of the telecommunications and media / entertainment industries.

What’s the Potential?
Location-based services are a $1.9 billion business, projected to hit $3.8 billion by 2012, according to research firm Gartner.

In a more recent report… Location-based services could become a $10 billion per year business by 2016 – Strategy Analytics “The $10 Billion Rule: Location, Location, Location.”

“Consumers are increasingly demanding services such as search, maps or navigation, for which location information is either fundamental to or provides greater context, utility and therefore appeal,” the firm said. “For advertisers, location data provides opportunities for ad targeting and optimization.”

Location-based search advertising could account for “just over 50%” of the predicted range of $10 billion in 2016 which is obviously something a smart business owner needs to be aware of.

Tie this with WiMAX 4G and you can easily see that your mobile device will have a capability never seen before in any ecommerce environment including the World Wide Web.

© 2011, Chris Lott and SalesBlog!. All rights reserved.