Facebook has launched a new location-based service called Facebook Places that allows users to check-in at locations and share their location with friends. The service aggregates check-ins onto users' profiles and the Places Page for that location. It allows users to find friends nearby and discover new places. While this enhances sharing and discovery, it also raises privacy concerns since check-ins are public by default. The service provides new opportunities for brands to engage with customers, gain insights into customer locations and conversations at venues, and target ads locally. It also introduces scalability challenges for national brands with multiple locations.

1. Connecting Brands to People
And Building Stronger Relationships
First Look: Facebook Places
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2. Sharing the “Where”
The Product—Facebook Places
‣ Facebook’s location-based service, Facebook Places,
allows users to share where they are, find out where
their friends are, and discover places nearby.
‣ Users “check in” at a location either by accessing
touch.facebook.com on an HTML5 and geo-location
enabled smart phone or through Facebook’s mobile
app—initially only available on the iPhone. This check-in
action then aggregates onto the user’s News Feed and
the specific location’s Places Page. Additional
functionalities allow users to tag friends who are with
them at a Place, attach an optional status message, or
add photos.
‣ Places can be claimed by business owners. If a Place
has been merged with a Page, users will be able to
engage in two-way communication.
‣ Facebook will release an API (Application Programming
Interface) for Places with read/write capability. This
would grant third-party developers not only the
opportunity to scrape data related to Places but also the
ability to create proprietary applications built upon existing
Places data.
The Users—Facebook Mobile
‣ 500 million total users
‣ 150 million active users currently access Facebook through mobile devices
‣ People who use Facebook on mobile devices are 2x more active than non-mobile
users
‣ More than 200 mobile operators in 60 countries currently work to deploy and
promote Facebook mobile products
Source: Facebook — Press Room (facebook.com/press/info.php?statistics)
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3. User Implications
Sharing the “Where”
When users check in at a location, they can publish a status update that will
aggregate onto their wall and their network’s News Feed. Once user check in, they
can choose to tag any of their friends who are at the same location. This tagging
feature allows users to share their check-in experience with other friends who do not
have an iPhone or smart phone, expanding the overall reach of Places to all
Facebook users.
Finding Friends
Checking into a location also allows users to read any updates or see any photos that
other friends have tagged to that particular Place. Additionally, users can see if any of
their friends are at that same location with the “Here Now” feature, or if friends are
within the vicinity. Users can even receive push notifications when friends check in at
nearby venues.
Discovering New Places
Being able to see where friends check in encourages users to explore new stores,
restaurants, bars, etc. Places Pages can also function as another resource for reviews,
tips, and information about a particular venue.
Protecting User Privacy
As with other additions to Facebook’s features, privacy remains an important issue
for many users. Similar to the instant personalization roll-out that caused a stir
among privacy groups, Facebook is integrating Places into users’ settings as a default
feature where check-ins appear on users’ profiles, in News Feeds, and in the activity
stream for that Place. Moreover, friends are able to check users in without their
explicit approval. Although Facebook allows users to change this in their privacy
settings, Facebook’s decision to once again take an opt-out approach is certain to
raise more privacy concerns.
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4. Brand Implications
Shift Toward Context-Aware Marketing
The integration of a geo-location component into Facebook’s platform through
mobile devices marks the arrival of geo-location into the mainstream and reflects the
rise of the mobile space as a viable marketing channel. More importantly, national
brands now, more than ever, need to address the role of mobile within a holistic
marketing strategy.
In the larger scheme, Facebook is increasing its repository of socially relevant data
about consumers. Previously shared bits of information can now have the additional
context of where they take place. The constant, gradual increase of the amount of
contextual data on consumers signifies the paradigm shift in marketing toward a
more context-aware approach. The advancement of technology—mobile devices in
particular—and the ability to provide such context-aware, always-on type of data
present the opportunity for marketers to deliver highly targeted and tailored brand
messages to consumers.
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5. Another Communication Channel
Places will become another channel where conversations can take place. This
presents a new opportunity for brands to engage with their consumers and to drive
word of mouth and trial/consideration in an organic way. Now brands not only have
the ability to identify consumers and any opportunities in order to play a more
meaningful role in the conversation, but can do so in real-time and in person.
On the flip side, Places can also foster negative chatter and complaints. Similar to
other social media platforms, like Twitter or Yelp, Places Pages will require diligent
monitoring to quell any potential social catastrophes. Brands that are cognizant of
the potential impact of negative social chatter have the opportunity to reverse
negative brand outcomes in person. For example, if a restaurant that is actively
monitoring conversations around its brand on Facebook sees that a customer
posted a negative comment about the quality of service on their Places Page, the
restaurant would be able to address that customer’s frustrations immediately and in
person.
Addressing Scalability
Places finally answers—or at least attempts to address—the question of where local
fits within a national Facebook strategy. Since users can create a Places Page by
checking in to a location, all venues will be forced to address the audience and the
conversations that collect on these Pages. Brand Pages with only one location are
able to merge their Places Page with their brand Page. Facebook has alluded to the
development of a solution for linking multiple Places to a single page by allowing
national brands to “adopt” local Places Pages into their central Facebook Page. Until
the release of this solution, brands with multiple Places can going through a claiming
process for each individual location.
Additionally, the introduction of Facebook Places creates more paid media
opportunities in which brands can directly advertise local Places and drive users to
specific locations, providing another option for geo-targeted and relevant messages.
Another important aspect to note is the possibility of Facebook allowing additional
targeting capabilities for ads to target not only people who have checked in to a
Place but also friends of people who have checked in. Such capabilities would only
further strengthen the power of Facebook as an advertising platform.
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6. Opportunity for Branded Use of Places
A read/write API for Facebook Places will allow brands to leverage Places to build
proprietary applications and integrate them into campaigns. As Facebook asserts
itself as the most robust repository for geo-location data, proprietary, branded
applications instantly become more viable. More importantly, Facebook’s current
mainstream presence offers a scalable opportunity for brands intending to execute
geo-location and mobile marketing initiatives.
Paid, Owned, Earned, Shared Media and Advocacy
Places add another layer to paid, owned, earned, and shared media. As another piece
of owned media, Places Pages will aggregate earned media pieces such as check-ins,
geo-tagged status updates, and photos. These earned media actions also fall into the
bucket of shared media, increasing the importance of shared pieces that will spread
through users’ News Feeds. Additionally, the ability to create specific Places ad units
will provide another paid media outlet that will activate owned, earned, and shared
media interactions.
The increase in earned media further empowers brand advocates and increases the
need to engage with them and amplify their voice. The new Places data will help
brands develop a significantly more quantifiable value of a brand advocate and their
significance as drivers of in-store traffic. Thus, as brands move closer to the goal of
quantifying the true value of an advocate—and more importantly, the true value of
social media—the increase in the amount of contextual data on consumers presents
a compelling case for brands to evaluate their approach in the continually evolving
social space.
Justin Oh (@hellojustinoh) and Nathalie Espinol (@ndesp) are Social Media Strategists at 22squared.
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