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Smart Phones:Geofencing and Future Location-based Services

Sunday Nov 7, 2010

If 2009 was about Facebook and Twitter going mainstream, and 2010 was about Foursquare and social media going mainstream, then hang on for 2011 because its going to be about the continued ubiquity of the Smartphone. When you combine the Smartphone with the speed that social networking is growing there exists some lucrative opportunities ahead for businesses to connect.

Enter Geofencing…What is a Geofence? Well first of all this isn’t something entirely new. The practice of limiting mobile employees to a specific geographic location by tracking their whereabouts via GPS has been around and utilized in several industries for years. A Geofence is a virtual perimeter for a real-world geographic area. It can be dynamically generated as in a radius around a store or point location, or based on zip or postal codes, neighborhoods, sales territories etc..  However, there is an interesting aspect to Geofencing from a marketing perspective when you consider what happens when you combine this technology with the functionality of a Smartphone connected with our social networks.

When someone enters a Geofence the location-aware Smartphone can inform them and provide location-based messages via SMS. This is only effective if we permit these messages because with any good technology that makes use of your personal information (i.e. where you are physically located), there are concerns about misuse of information. However, if used with consent and the proper applications are accounted for then the advantage of location-based services far outweighs any issues of misuse.

Foursquare which boasts 100,000 new users each week requires that you “check-in” to activate the application. This is more and more becoming the norm with the first wave of location-based applications. Footprint Feed will broadcast your whereabouts and messages with links to your Facebook, Twitter, RSS and Google Buzz accounts with your permission.

So here’s the scoop. Apon entering the stadium to watch a football game you are welcomed to the Stadium’s Geofence over your cell phone. If you choose to answer a few questions you have the opportunity to be entered to receive coupons for drinks, receive contest entry forms, or let your social network know where you are. Maybe someone you know is in the crowd and you can hookup at half time? Kinda cool when you think about it.

There is no question that the future points to more personalized and permission-based advertising anywhere and anytime over our cell phone, but developers are still limited by what handsets will accommodate, and of course there is the issue of battery life to contend with.

Regardless, the future is not far off when your Smartphone will not just handle your communications needs but will soon be running everything in your household including your wife to the door. Here’s the picture. Imagine as you drive home from the office and enter your home Geofence that your Smartphone automatically sends an SMS text “Honey, I’m home”;  or notifies the dog through a song played on his collar that its time to retrieve your favorite slippers. And if this isn’t enough imagine your automatic martini shaker being activated from your Smartphone to create your favorite tasty beverage? Ah…the good life. Hey, its just a ring away.

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