> TRENDS
in associationwith
Ciaran Farrell, business development manager, ICAN
Jonathan Forrest, managing director, Cybercom
Foursquare is something of a pioneer in this domain. Launched
just two years ago, it is a location-based social networking site that runs on a smartphone application and allows users to con- nect with friends and update their whereabouts. It has a gaming mechanic so users get points for checking in at different loca- tions and completing different tasks, and can be awarded badges or be made ‘mayor’ for being a frequent visitor to a par- ticular venue. The application has tended to be used by smaller individual
retailers and service providers in Ireland rather than brands. That said, Domino’s Pizza launched a promotion across the UK and Ireland last May encouraging people to check in at its outlets on Foursquare by offering them a free side order if they spent more than a certain amount. In the US, meanwhile, a number of huge brands regularly run Foursquare promotions, including Starbucks, AmEx, Red Bull, Louis Vuitton and The New York Times. Sony recently became the first consumer electronics brand to offer its customers exclusive offers on Foursquare in Europe. Yelp is a local search and reviews service that introduced a loca- tion-based check-in to allow businesses to reward shoppers with discounts. In October, it launched a Yelp for Business Owners application, whereby every time a customer checks in on their mobile phone when in a business premises, it unlocks a special offer. The user just shows the business owner the certificate on their phone to avail of the offer.
New arrival Facebook Places was launched in the US and the UK back in August and was finally rolled out in Ireland at the beginning of February. Again, the service allows users to check in to venues to let their friends know where they are. Facebook Deals is being seen as the real opportunity for mar-
keters, however. Launched in the US in October, and in the UK, Germany, France, Italy, Spain and Canada in February, it allows smartphone users who check in to businesses through Facebook Places to avail of special offers and promotions. Some of the brands that came on board for the February launch
30 Marketing Age Volume 5 Issue 1 2011
The location-based check-in service Foursquare has been a pioneer in this space
included Starbucks, O2, Debenhams, Mazda, Yo! Sushi, Benetton and Argos. The service offers four different types of deals: individ- ual deals for a discount, free merchandise or other reward; friend deals, where the user and a friend can claim an offer together; loy- alty deals for being a frequent visitor to a particular place; and charity deals where businesses pledge to donate to a cause when the user checks in. Facebook’s arrival onto this scene will fuel the location-based marketing opportunity for brands in Ireland, says Jonathan Forrest, managing director of Cybercom. “The difference is that there are very few people on Foursquare because they’re dependent on creating their audience, whereas Facebook has almost two million people now registered in the Irish marketplace,” he says. “Over the last number of weeks, there would have been a dramatic increase in the number of people using Facebook Places and therefore starting to register their loca- tion for potential marketing purposes that have yet to be utilised. “At the moment, the capability of Facebook Places to drive foot-
fall is only being driven by the fact that you may see that your friend is in a local pub and you might join him. This is a footfall driver for the owner, but it’s not yet commercially or promotionally driven. When Facebook Deals launches, there will be a significant oppor- tunity for brands to get involved. “You can see how the drinks industry could benefit significantly
from it by driving footfall into the publicans’ network. And you can see how brands can drive people into locations to purchase their gear in the offline environment, whatever that might be.”
Growing interest According to Ciaran Farrell, business developmentmanager at ICAN, his agency’s clients have become increasingly interested in location- based marketing since the launch of Facebook Places. “We’re very much at the education stage with a lot of our clients about it, but they’re very interested in it,” he says. “The benefits for retailers or any- one with a physical presence aremassive. It’s something we’re going to be seeing very quickly rolling out to clients. “Because of the niche nature of Foursquare, the uptake hasn’t been massive. But now you have this behemoth of Facebook
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