The Marketing Innovation Blog

These are the three most important innovations happening within Facebook that marketers need to know about now. 

1. Location

The much anticipated Places feature was announced on Wednesday at Facebook HQ.  Users can now “check in” to real world locations and establish Place pages on Facebook.  It’s a little early to know exactly what this means for the platform, but it’s safe to say that “checking in” is well on its way to becoming a mainstream activity and Facebook could become the default location database (see “Location as a commodity”)

While most reports suggest a very small segment of the population currently use location based services, this number is now going to dramatically grow.  For many, the social benefit of connecting with friends around a location will be enough.  However, if this new feature is going to gain mass adoption and overcome the obvious privacy backlash we will need to see real world “checkincentives” from retailers, restaurants, entertainment venues and others.  Facebook’s revenue is predominantly based on advertising, and they are already providing a few tools that allow businesses to claim their Place and target consumers (details here). 

Facebook is also encouraging third party developers to build on the Places API (enabling apps to pull location data from Facebook and vice versa).  It was interesting that Facebook involved Foursquare, Gowalla, Yelp and Booyah in last night’s announcement.  This was a smart PR move, but these relationships are destined to become more competitive as Facebook introduces new features.

2. Video

Right now my only interaction with video on Facebook is when a friend posts a YouTube clip in a status update.  I believe that’s about to change.

Last week we wrote about the formal introduction of television content to the social network through a partnership with the UK’s Demand FIVE.  We won’t rehash all the details, but don’t underestimate the opportunity for Facebook  to compete with Hulu and others in the space.

Recently Facebook also launched the Facebook Live application, a streaming video channel powered by Livestream.  The company will use this to broadcast content like last night’s press conference and the bizarre “post-game show”, along with interviews like this one with actress America Ferrera. If they develop more original programming and reach even a small portion of the 500 million profiles they have access to, they could attract a massive audience.

For me, the most exciting new video component on Facebook was launched this week by the third party development shop GixOO.  Their application called Rounds allows two people to video chat while playing games, surfing the Web and exchanging virtual goods.  Heineken is already getting in on the act by sponsoring the Rounds social game Truth or Dare (see video below).  I can’t help but wonder if this app could make Facebook a viable competitor to Apple’s FaceTime in the mobile video space.    

When it comes to video on the Facebook platform I think it’s clear to see we’ve only scratched the surface.

3. Currency

Facebook Credits are quietly becoming the dominant currency for social gaming.  Credits are points mostly used to make in-game purchases of virtual goods (think Farmville crops, etc.).  Yes, people are spending real money to buy virtual goods, included branded items, in huge numbers and Facebook keeps 30% of all transactions that use Credits.  If social gaming is already a billion dollar industry it doesn’t take a mathematician to figure out what this could mean for Facebook. 

Facebook Credits were even tied into the location game before yesterday’s announcement of Places.  Through a partnership with ShopKick, an app we discussed in a post yesterday, you can earn Credits by visiting select retail locations.  In another recent promotion with game developer Zynga, you could earn credits by making select purchases at 7-Eleven. 

But why stop at social games?  I believe Credits will soon be used for the purchase of music downloads, gift certificates and more. 

Can you think of a unique opportunity for marketers to leverage location, video and Credits?

Is there something more important happening on the platform that we missed?

It’s still extremely early in the location based services space, however a few important new partnerships may quickly introduce this trend to the masses.   

Yesterday Simon Property Group (Simon Malls) announced a partnership with Shopkick, a new iPhone app that rewards customers for a variety of location-based activities.   If you open the app and enter a participating retail location you’ll earn points called Kickbucks.  Early retailers include American Eagle, Best Buy, Sports Authority and Macy’s.  Once you’re in the store you’ll receive additional notifications including special offers and instructions for earning more Kickbucks which can be redeemed for gift cards, Facebook Credits and music downloads.  If you’re feeling generous you can even trade your points for a charitable donation through CauseWorld. 

This marks the first time I’ve seen an app in the location space that connects with your existing brand loyalty card.  One can imagine the value this could provide for the retailer and the consumer in terms of personalized offers, recommendations and more. 

Many critics doubt there will be enough consumer adoption for this app, or others like it, to provide a significant return for retailers.  Facebook could completely change the game for everyone in this space when they announce their location plans later today on the new Facebook Live.

I believe it may take some time to reach a critical mass, but eventually our phones will be our loyalty cards and granting retailers access to our location data will become a valuable proposition. 

Do you think Shopkick will appeal to a limited audience or will teens and parents join the early adopters and take advantage of location based apps sooner than later?