First there was Facebook, then Twitter, then Blippy – it seems society at large is obsessed with knowing where, when, why and how people spend their time and money. But the newest trend in social media is so-called ‘location-based’ applications – allowing users to track the real-world physical location of their friends within a game. Is it really necessary for people to know your exact coordinates of their co-gamers at every second? Maybe so.

Recently a string of free apps like Foursquare have been all the rage – they allow users to check-in at variety of locations around their city using their phone, earning game points that can turn into real-life rewards. Rewards are based on use, so the more a user checks in at a given location, the more likely they are to receive a benefit. Some programs offer user avatars and gadgets you can only earn through the accrual of points – encouraging frequent use.

The concept is innovative, and very emblematic of the types of interactive media cropping up so frequently in recent months. But the question remains: is it really worthwhile? Are discounts and freebies earned through your phone worth the effort of virtual check-ins? As far as I’m concerned, coupons, loyalty rewards and discounts through other mediums are just as satisfying, but often don’t require a physical effort. However, if you’re headed to your local Starbucks anyway, then I suppose there’s no harm in clicking “check-in” for some extra sweet rewards.

Game users aren’t the only ones who could potentially benefit from location-based apps. The advertising options available direct-to-consumers through phone-based media could be used by a wide variety of businesses and institutions alike. For example, say a user has checked into Starbucks. Wouldn’t it be great if at that specific location they could catch up on local news, or check out a local events calendar? And why stop there – you could then sell advertising space to nearby businesses, whose information would show up when the user was within X distance of their storefront. Users could customize the information that they’re given, making it fun for them, and completely hassle-free. And what’s wrong with that?

It’s still too soon to know the fate of these types of apps, but companies had better hope that they catch on – the rewards for both parties could be great.

Posted by Taryn Collins | Share: Twitter, Facebook, Del.icio.us, LinkedIn