Social Media After the Downturn: Location, Location, Location

While no one is ready to say that the United States economy is riding the wave of growth yet, some U.S. economists have predicted, albeit cautiously, that we can expect an uptick in consumer spending next year. What we do know is that the post-recession landscape will put increased pressure on brand marketers to prove how and why what they do is relevant in other words, companies will demand that they justify their marketing spend. 

Conversations and community are two words that come to mind in the present media landscape. Social media has led to buzz generation, instant feedback (negative as well as positive), and the possibility for a brand or product to go viral.

Social media is prized as the way for companies to observe and participate in conversations about their products and services. It enables them to foster unique ways to help build their brand in measurable ways. But social media is leaning heavily toward broadcasting its users locations.

For example, Dennis Crowley, the co-founder of Foursquare, a GPS-powered social networking site that allows its users to broadcast their locaiton to their friends, has a vision for his ideal way to end the day: at 6 p.m., his iPhone alerts him to the evening's plans. It has already checked his friends' calendars and knows who's free tonight, so it suggests a restaurant they've all wanted to try. It notes when a table is available and informs him that three other friends are planning to hang out across the street so they can meet up later. No more missed opportunities. No more last minute planning sessions before the weekend hits.

This is powerful. And he says it will happen soon. The business model is simple: generate as big a user base as possible and sell national brands and local merchants on the possibilities of marketing to people as they congregate, ready to eat, shop, or spend.

For example, PepsiCo's been experimenting with Foursquare. They teamed up for a charity drive in New York. Every time someone checked in within the city limits, Pepsi donated 4 cents to a nonprofit called CampInteractive (to a maximum of $10,000). There was an impressive turnout and the model can be scaled to another goal: getting people to go to an event. Incentivising a location to give interested, potential buyers to come knocking.

Mobile marketing has made rapid advancements in the last couple of years. But it hasn't hit its tipping point yet. The next phase could include applications that take full advantage of location-based services, while simultaneously giving you a true two-way marketing experience.