Posts Tagged ‘location’

Location, Location, Location

November 8, 2010

One of the keys to having a good business, the old adage goes, is, “Location, location, location.”  Now, despite what  a Pew Center report says that location-based services like FourSquare and Gowalla have not caught on–the measure is not mass, at least not yet.

As mentioned in this space in August the reality is there are people out checking in, and leveraging location-based apps and services.  If the Pew Center numbers are correct, 1% of adults in the US use LBS apps and that number is 4% of US adult internet users.  Yeah, percentage wise that’s a small number–but mass wise, that’s a pretty big number.

And something to keep in mind, is something Larry Kramer (like me, he too is former CBS Digital)–those users are  a premium to advertisers today.  Kramer actually said this morning on Bloomberg TV that the future of TV advertising is actually positive if you add in the ability to target–demographically and via geography.

From experience that can be more than 3X an ad buy.

Again, smallish numbers today, but numbers that get better and as the data is better mined, and the targeting better refined–that premium goes up.

On the product side–as I opined in August, Facebook would help drive the LBS market–and is slowly is.  This week, an updated to Facebook places went live.  Add to that some innovations going on–like what another former boss of mine is doing at Shopkick taking LBS into the store–and the actual user experience is becoming richer.

As the user experience gets better–which means the likes of FourSquare, Gowalla, Bright Kite-and the ones we don’t know about yet make their apps better–the user engagement goes up.  That 1% easily becomes 3%.  The 4% becomes 10%.

And the driver for this will be the ad dollars on the table now, and in the future.  It is a business.  Yes, it’s a moment when product is ahead of consumer demand–but as that gap closes–winners will survive, losers will be cut and ultimately a viable product will be left.

 

 

Social, Gaming-There is More, Right?

October 10, 2010

In what are probably equal parts of influence between work, my kids, curiosity and boredom I have been spending time in the social game space lately primarily on the iPad, and I have to admit I am hugely underwhelmed.

For a bunch of reasons, Farmville never clicked with me on Facebook, I tried it–I was even one of the early players but I just never was able to “get into” the game.  There are friends in my feed who are on the game more than 12 hours a day.  In fact, it got so bad, I have actually hidden Farmville and its related links from my feed.

<Note to Facebook-it would be nice to be able to similarly hide that content and manage it from apps and mobile web.>

However, I completely understand the importance of “game mechanics” as a driver for engagement.  Hell, for really no apparent reason I manage check-ins on Foursquare and Gowalla regularly and BrightKite and Loopt with less frequency and I really can not give you a good reason for it.  There are aspects that are engaging.

1. The Work reasons:  Taking those aspects and building them into the broader experience–the so-called real-time web is a driver.  So, since this is my business I need to be in the space.

2.  The Kids excuse:  My kids are becoming voracious in social gaming–and since I need to be a good parent in 2010–and know what they are doing and provide guidance to safety and best practices, I am out there with them.

3. The Curiosity factor:  I still wish I could figure out the compelling parts of Farmville or even the ones I do play like We Rule (I am esd714)

and City Story I am esd714).

4. Boredom is a driver:  I have an hour-20 each way each day on the Long Island Rail Road.  Tack on up to 10 minutes to at least half of those trips each week for random “only on the LIRR” issues, and I have time to kill.

Even with that, and the connections to Facebook and Twitter there just is not anything overly compelling that draws me into these games.  The element of success in the game just does not carry enough excitement.

Of course, there are Second Life like experiences, and not really integrated into my daily web or consumption pattern–which probably helps make them less desirable to me.  If there were a way to hook this into my daily reading on hockey, or baseball or politics it may work better.

But still, there has to be more, right?  There is a bustling business model of selling for not a little money game components for these virtual world–north of $5B in 2010 so there should be a way to make this ring a little more indispensible, isn’t there?


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