Facebook takes on FourSquare with new location-based feature, SMEs urged to join up for advertising benefits

Social networking giant Facebook is attempting to beat Foursquare at its own game, with a new feature that allows users of its iPhone app to connect with nearby “friends” by checking-in to various locations.

Online entrepreneur Slade Sherman, who founded Australian coupon-based social networking site Myzerr, says while the key offering here is different to the gaming-focussed Foursquare, SMEs should still be involved in location-based marketing.

“What differentiates Facebook from Foursquare is that for Foursquare, the social objects thing is more of a game, and Facebook is designed for you to connect with your friends and share information. But for both applications there are huge benefits.”

“I think if you’re operating a small business you should at least consider setting up these profiles, and if there are advertising options in this then you should be considering those as well,” Sherman says.

The new Facebook feature was announced in the US yesterday, with tech press gathering for the long-anticipated announcement. Analysts have been watching Facebook closely for the past few months, predicting it would reply to Foursquare’s growing popularity in due course.

The new feature allows Facebook users to “check-in” to a location through their iPhone app, with that information then sent to everyone on their friends list. Users can also view a list of where their friends are, along with any sort of recent activity.

A list of nearby places is also provided, and if you’re walking into a venue that doesn’t yet have a listing, you can add it and find other Facebook users that are in the same area.

“After checking in, your check-in will create a story in your friends’ News Feeds and show up in the Recent Activity section on the page for that place,” the company said in a blog post.

“The next time you head off on vacation or go to a show, check in with Places to find out which friends are there. See who is close by and read the comments from other friends who’ve been there before.”

The emphasis on location-based social networking comes as more users are taking advantage of GPS-enabled smartphones, with Foursquare being the clear leader in this area. The company, which launched last year, allows users to check-in to various venues and earn “points” and achievements for regular visits.

The Foursquare service also allows users to become the “mayor” of a particular listing by visiting a regular number of times. Some small businesses are even giving discounts to these mayors, encouraging more competition.

In contrast, Facebook is sticking with its key theme of allowing users to connect with their friends. There are no points, or achievements, with the service simply allowing users to find out which of their friends are visiting different areas at different times.

But while Foursquare may appear to have more of an entry-point for businesses, Facebook is still appealing to SMEs.

“Places creates a presence for your business’s physical store locations – encouraging your customers to share that they’ve visited your business by “checking in” to your Place,” it said in a statement.

“When your customer checks into your Place, these check-in stories can generate powerful, organic impressions in friends’ News Feeds, extending your brand’s reach to new customers.”

There are also some more opportunities for advertising, with Facebook saying that businesses can decorate their “place” page just as much as their official Facebook fan page.

“Once you claim your Place, you’ll be able to advertise it just as you advertise your Facebook Page. To advertise your Place, click “I want to advertise something I have on Facebook” in the ad creation flow and choose your Place from the drop-down menu.”

Facebook is clearly attempting to build a social directory of businesses, through which it may be able to produce some more revenue.

Sherman agrees, and says businesses should definitely be taking advantage of this new platform, considering Facebook Location has the opportunity to be immensely popular very quickly given the site’s widespread use in Australia.
“The best benefit here is that it’s friends-based, and so you’re always sharing information with your friends. And I think businesses are crazy not to be looking at social media like this, and the fact that you as a business can now be located because of your location, that gives you even more advertising benefits.”

While Facebook Locations isn’t yet available in Australia, the company says it is currently in the process of rolling out the service around the globe and it will be available soon.