Facebook is taking over the planet, plus a bit about location-based marketing
In my opinion, location-based marketing is going to become huge. I’m standing in Denmark in May 2010 after some good speaking engagements, looking out over the sea. Beautiful Denmark. Yes, I know someone will immediately remind me about the cold for the rest of the year, but right now it looks fantastic. Still, it isn’t the weather or the tree beside me I want to talk about. It’s Facebook and the little button that’s appearing everywhere.
You’ve probably seen it on Ekstra Bladet, Amino and other websites. The button that lets you say you like something. If I click it on an Amino discussion, a message may appear on my Facebook profile saying Martin Thorborg likes that thread. My friends can discover it and head over to Amino.
That’s why we put the button on Amino. It brings a little traffic, and having Facebook on the site makes us look a bit hipper too. I’m not hugely impressed by the return and am actually considering removing it again. But the interesting question is why Facebook wants the button on all those websites.
Facebook’s little button as a Trojan horse
Branding is one explanation. But the more interesting possibility, as I see it here in 2010, is collecting data. My concern is that websites with the button become part of Facebook’s ability to track where users go.
I explain it through the difference between closing your browser and logging out. If you go straight into Facebook next time without having to enter your login and password, you haven’t necessarily logged out just because the browser was closed.
My point in the video is that if Facebook can connect your visit to Amino with your profile, it adds another piece of information about you. If you visit Amino often, you’re probably interested in entrepreneurship. That knowledge can be useful when choosing which adverts to show you.
I also imagine an advertising programme where websites such as Amino can display Facebook adverts, a bit like Google AdSense. My prediction is that Facebook’s knowledge about the person could become a strength: Which sites do you visit, where do you shop, what interests you? That includes the more private things people do online.
I compare it with an advert chosen based on the words on the page you’re visiting. If Amino says entrepreneur, a relevant advert can be shown. But a more comprehensive profile can give the advertiser more information. I use the hypothetical example of someone coming from the Danish tax authority’s website to Amino. That can tell a different story from the page’s words alone.
Location-based marketing takes context out onto the street
The next step, as I imagine it, is the phone and where you physically are. At this point, Facebook has talked about location-based services. I think there’s also been talk about Foursquare and similar services, but my guess is that Facebook will build something itself.
If you have Facebook on your iPhone or Android phone, the built-in GPS can become part of new services. My prediction is that Facebook will soon be able to know you’ve walked into the bakery, if you allow it.
And why would you say yes? Because you get something in return. Imagine walking into a pizzeria, your phone beeps, and you’re told that the pizzeria across the street is offering a 15 per cent discount. Suddenly, it seems clever that someone knows where you are.
Discounts, little games and messages about a traffic accident you can avoid may make it easier to accept. The company gets a hell of a lot of information about you, and in return, your life becomes a little easier, cheaper, better or more fun. That’s the trade-off I expect.
The boundaries of privacy are shifting
I don’t think you can simply dismiss it by saying people will never give permission. Our boundaries have already shifted. Just a few years ago, many people didn’t imagine they’d share pictures of their children and private lives with so many people.
My prediction here in 2010 is that, within the next one to three years, many people will agree to share more information because the services give them something they want. You can call it being tricked or call it a trade-off. But privacy becomes part of the price.
A coffee advert works better outside the café
As a business owner, I think you need to start considering context in a new way. It’s about more than the website someone visits. It’s also about where they’re standing.
A man in the middle of a desert won’t get much out of an advert for ten per cent off at Starbucks. The chances of him popping in for a coffee aren’t great. But what about someone walking past a Starbucks café?
If you also know that person has previously visited Starbucks or a competing coffee chain, a message offering 25 per cent off a latte becomes much more relevant. Interest, offer and physical location come together. That’s what I mean by context-based marketing. Also read E-pusher about my experiences with online marketing and sales.
I also see the iPad models equipped with GPS and 3G as part of that development. Phones and other mobile devices could end up telling companies far more about where we are and what we do.
Insurance discounts for moving around or driving properly
I take the thought a step further with a couple of hypothetical insurance examples. Could an insurance company work with Facebook or create its own app and use the phone’s sensors to assess how much you move?
I imagine a scheme where you get penalty points for visiting the bakery but a discount for walking a kilometre. If you walk five kilometres a day, perhaps the company could reward you because it has an interest in keeping you healthy. That’s an idea I’m playing with, not a scheme I’m saying already exists.
Similarly, a car insurance company could use GPS data to see how fast you drive. Stick to the speed limits and you get a discount. Drive, for example, 25 per cent too fast on a road with a 50-kilometre-per-hour limit, and next month’s bonus could disappear. Again, that’s my hypothetical example of what this kind of data could be used for.
How will you use it or avoid it?
I expect location-based services to explode over the next one to three years. As an individual, you need to consider what you’ll let companies know about where you go, stand, browse and shop.
As a business, you need to ask how you can use it. Are you the insurance company that creates its own app or makes a deal with Facebook? Are you the baker who brings people from the supermarket’s bakery section into your shop with a relevant offer?
In my opinion, a location-based, context-based life is just around the corner. You’ll encounter it and have to take a position. How will you use it? Or how will you avoid it? That’s for you to figure out.
Facebook’s "Like" is a cute little thing that’ll only give you a nip on the backside… Best wishes, Martin
Helt enig, hørte et andet podcast i sidste måned omkring det.
– og der snakkede de specifikt omkring forsikringsselskaber, som du selv nævner, hvor de begynder at kunne tracke dig, og dermed kende dit liv langt mere i dybden, end de gør nu.
Så helt sikkert, det er noget som kommer til at ændre verden næsten på højde med den ændring der skete, da internettet brød igennem.
Ha’ en god pinse 🙂