Posts Tagged ‘Foursquare’

Social networking tools that combine location with a status update have been around for a few years. Among them, Gowalla and Foursquare have gained some traction among the uber-connected. Both of these tools broadcast “this is where I am right now” to other users in some way, shape or form. Collectively, such systems are called “location based services” (LBS). Twitter also recently announced support for location-based tweets, prompting some analysts to predict the demise of the aforementioned tools. But if Twitter was going to kill them, Facebook will for sure.

Ad Age reported today that Facebook is getting ready to release location-based status updates. But the reason I am writing about this is not to report another Goliath-kills-David story. It is because both Gowalla and Foursquare employed a marketing strategy which is effective, but risky. And now they face the business end of that risk, so to speak. They both focused their marketing efforts on digital hipsters, in particular choosing the super-cool SXSW conference as a launching pad and battleground for the attention of social mavens. The strategy worked, and both reported significant adoption in 2009 and growth in 2010.

The risk of this strategy? Hipsters are fickle. Being hip is about knowing what’s next, not doing what your neighbors do. Sometimes, hipsters can skyrocket a product or brand into the mainstream, as when Corona beer went from super-cool to mainstream import. But if a big, well-known brand copies a hip product before it goes mainstream, all you are left with is a bunch of hipsters who are eager to turn their backs on you and get on to the next new thing.

Will all of my friends who spend time on Facebook switch to Foursquare or Gowalla for location-based services? I don’t think so, and according to Ad Age, big brand marketers don’t think so either. Will Foursquare and Gowalla’s current users bring mainstream users into those services? Nope. That’s not what hipsters do.