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Summary:

In a blog post on its updated privacy policies, Facebook dropped some hints about what the social network has in mind in terms of future location features. But will they co-exist with Foursquare and Gowalla, or will Facebook become the one ring that rules them all?

Facebook announced some changes to its privacy guidelines today, but that wasn’t what captured the interest of the blogosphere and other media outlets. The really interesting thing about the blog post by Facebook’s deputy general counsel Michael Richter was what he said about location, and the implications for potential location-based services and features that might be added to the social network. As anyone who has been following the tech sector (and particularly SXSW) over the past six months or so knows, location is the new black, and probably a bunch of other colors as well. And one of the big questions on the minds of many is: What happens to the location-services market when Facebook decides to enter? The company is expected to launch location features at its annual f8 developer conference in April.

The reality is that while Foursquare and Gowalla and Brightkite have well-established user bases and have built out many features — and arguably benefit from focusing on doing a single thing well, as opposed to being a hydra-headed monster like Facebook — there is too much fragmentation in the market for the current state of affairs to continue. Already, services such as Check.in (from Brightkite) are emerging to try and bring some semblance of order to it all, and others such as Digg architect Joe Stump’s SimpleGeo are providing tools that any company can use to add location-based features.

So what did Facebook say about location exactly? Well, not much. The blog post says:

The last time we updated the Privacy Policy, we included language describing a location feature we might build in the future. At that point, we thought the primary use would be to “add a location to something you post.” Now, we’ve got some different ideas that we think are even more exciting. So, we’ve removed the old language and, instead added the concept of a “place” that could refer to a Page, such as one for a local restaurant. As we finalize the product, we look forward to providing more details, including new privacy controls.

There are some interesting hints in here, which everyone is busily trying to parse, like ancient Druids pawing through the entrails of a chicken trying to foretell the future. It seems obvious that Facebook was originally thinking about simply tacking on location to status updates, so that you could tag your wall post or photo with location data — in other words, the same way Twitter apps do now. But instead, the company appears to be looking at how location can be integrated into the pages that users, and particularly businesses such as restaurants, are publishing on the network.

So when location becomes part of the features that Facebook offers businesses, what could users do? They could interact more closely with a fan page for a specific company, for example, by allowing Facebook to use their location to tag content such as likes, comments, photos, and so on. And they could make it easier for users to find their friends who also happen to be at those locations, and connect with them — and, most importantly, allow for extremely targeted advertising and marketing pitches. So the big question is: Doesn’t that kind of functionality make it harder for Foursquare and Gowalla and even Yelp to convince people to use their specific services? Why bother, when the one social network all your friends use offers something pretty similar? Badges and leaderboards and all of those features would be trivial to reproduce if Facebook wanted to.

It’s possible that Facebook might decide to make it easy for Foursquare and Gowalla and Yelp and Brightkite to integrate their services with the site and allow their users to check in or connect through Facebook as well. But that would still leave much of the power in Facebook’s hands, and as a result much of the potential for monetization too. Either way, it feels like Facebook becomes the one ring to rule them all where location-based features are concerned (although I should note that this view is hardly unanimous — Topix CEO Chris Tolles, for one, disagrees).

Apart from the location-based comments made in the blog post, meanwhile, Facebook also seems to be suggesting that certain corporate partners will be allowed to grab some of your details from your Facebook profile when you visit their website outside of Facebook, even if you haven’t explicitly allowed them to do so. All Facebook has a good overview of the potential implications and so does Marshall Kirkpatrick at Read/Write Web, although the company’s exact plans are still somewhat of a mystery.

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  1. Will Facebook be the One Ring for Location? (Mathew Ingram/GigaOM) « My Blog Saturday, March 27, 2010

    [...] Ingram / GigaOM: Will Facebook be the One Ring for Location?  —  Facebook announced some changes to its privacy guidelines today, but that [...]

  2. andrea spiegel Saturday, March 27, 2010

    Instead of people-powered community, Facebook + Location creates friend-powered community. Since I’m proactively selecting my Facebook friends, I usually know the level of trust I place on their recommendations. I think that poses the biggest threat to Yelp. It would not take long for Facebook to spin up some solid competition — and if the data (the content we create) is public, lots of options for how Facebook can use it.

    1. Totally agree, Andrea — thanks for the comment.

  3. good analysis

    1. Thanks, Mark

  4. What’s the next best thing after innovation? Integration.
    Just ask Microsoft. Or maybe it’s just natural. Or at one point in time “all” personal context will be integrated into one service, most likely by the “most successful” player. Can make search and many other things more personal and precise. I don’t know if Facebook has the business acumen as Microsoft had under Bill Gates, but they are suddenly in a good starting position.

  5. Social Milestone » Blog Archive » Will Facebook be the One Ring for Location? Saturday, March 27, 2010
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  7. Stefan Wolpers Sunday, March 28, 2010

    The “ring” will manifest itself in my eyes once Facebook will provide a location API for external services (the where) to enhance today’s Facebook Connect (the who).

    It will lower the market entry cost of all sorts of local applications significantly. Imagine the possibility to offer a mobile coupon scheme without having to provide any app for iPhone, Android or Blackberry…

    1. Thanks, Stefan — I agree that in order for Facebook to gain, it has to open up more via two-way APIs. Give something to get something :-)

  8. Whether Facebook becomes the aggregator for location or not there will eventually be a backlash against location/tracking. The core problem is there isn’t any significant value for the consumer/individual in allowing corporations to track their location. On top of that lack of value for the individual there are very disturbing privacy drawbacks if LBS goes mainstream. Imagine hundreds of corporations you aren’t aware of, and all their partner corporations, knowing your location at all times.

    Does that give you a warm fuzzy? I didn’t think so.

    The value delivered by LBS is all for the business/corporation looking to track us. Whats in it for us? A Free coffee here or there? Not worth it. I’m a foursquare user for now so I’m not a privacy nut per se.

    I’m just saying I see where this trend goes if it continues and it’s not a happy place. There’s no way the bulk of the population, at least in countries that value freedom, is going to stand still for unfettered GPS tracking of their physical location.

    Roger

    1. I’m not sure it’s true to say there’s no significant value to consumers to share their location with companies — I think there could be (depending on the person), but it remains to be seen whether there is enough value for enough people to make it worthwhile as a market.

      1. I agree that the jury is out. But I have serious doubts that the broader population will entrust numerous private, and likely unknown, companies with rich and continuous information about their physical location. The information is very powerful and power corrupts.

        There is in my opinion only 1 LBS proposition the majority of the mainstream public would agree is valuable.

        That value is the Traditional GPS “Directions” searches – Summarized it’s the “Search for an address or type of businesses/service/landmark/event and route me to that address from my current location” value proposition.

        This is a proactive “pull information” use case where the user initiates and controls the entire LBS use case. In these use cases the users location is not being continuously broadcast for the consumption of other people or entities. Of course mobile operators do have continuous location information about their users phones, GPS enabled or not, but they are not, at least so far, in the businesses of making that information broadly available.

        I don’t believe most people will feel comfortable having their location continuously tracked by numerous third parties without explicit control of every tracking session. Very few people, once they think about it, will want “electronic solicitors” approaching the user either electronically or physically as a result of the broadcast of the status of their locations.

        While there certainly is a population of people who are comfortable with advertising their location broadly to other people and businesses in the context of social networking, that population is for the foreseeable future going to be, IMO, less than 10% of the adult population.

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