IN-DEPTH: Each piece of digital content that is created tells a story. Each time any LBS app is used, one includes location as a part of the narrative being shared with their network. It is the most honest look at how someone really lives their life, says Andy Ellwood, Director of Business Development, Gowalla.

Published: 30 Aug 2011

IN-DEPTH: Each piece of digital content that is created tells a story. Each time any LBS app is used, one includes location as a part of the narrative being shared with their network. It is the most honest look at how someone really lives their life, says Andy Ellwood, Director of Business Development, Gowalla.

One can tweet, like, blog, and “+1” things from sitting at one place. But to share real experiences around the places, one has to actually go. So this is a huge opportunity for the travel industry.

By Ritesh Gupta

Recently, a report indicated that 53 percent of the on-the-go U.S. audience are willing to share their location to receive more relevant content.

According to JiWire’s Mobile Audience Insights Report, mobile consumers under the age of 34 are more eager to share, with 60 percent offering their location for better information. The U.K. trends even higher, with 69 percent willing to share location information.

As people become increasingly mobile, they are looking for more relevant content and deals at their fingertips.

According to the same report, sales and promotions are the most popular types of information that mobile consumers are looking for when engaging with location-based services. The study examined how consumers rated various services when one mile and 10 miles from a location. Sales and promotions took the top position at both distances in the U.S. However, product availability and directions are of more interest at the 10 mile range, indicating consumer preferences for certain information begin to change with distance. Customer reviews were the location-based information most sought after in the U.K., regardless of distance. The data shows that proximity becomes a key factor for brands to consider when leveraging location-based advertising.

Location-based mobile check-in services are seeing rather impressive adoption among smartphone users. It is highlighted that the ability to interact with consumers on this micro-local level through special offers, deals and other incentives provides brands with the real-time opportunity to engage consumers through their mobile device.

From service providers’ perspective, the LBS market is highly fragmented. The market is expected to continue to fragment as the space evolves, and also one can expect many more vertically oriented apps that serve specific purposes or niche markets.

EyeforTravel’s spoke to Andy Ellwood, Director of Business Development, Gowalla about the latest trends. Excerpts:

It is considered that the use of location-based-applications that allow users to 'check-in' at a location is still dominated by early tech adopters. What’s so compelling about these early adopters is that they tend to have high levels of influence. How do you think the travel industry is making most of the opportunities?

Andy Ellwood:

Each piece of digital content that is created tells a story. Each time I use Gowalla (or any other service) to associated myself with a place, I am including that location as a part of the narrative I am sharing with my network. It is the most honest look at how someone really lives their life. I can tweet, like, blog, and +1 things from my couch. But to share real experiences around the places that I go, I have to actually go. This is a huge opportunity for the travel industry to inspire people to tell better stories and share them in real-time with their friends and followers.

It is being pointed out that Gowalla started out as a horizontal app and is evolving into a vertically oriented travel app. It enables you to push check-ins to Facebook, Twitter, and Foursquare and features a virtual passport. Can you take through your focus as of now?

Andy Ellwood:

From day one, Gowalla has set out to answer the question "What if you could use your mobile phone as a passport?" Being able to share, discover, and record the places that you go and the things that you experience have always been core to our company. As we've grown in users and use cases, we've found a lot of value in being able to share those stories across additional services as well.

On-the-go audience is increasingly willing to share location for relevant content and promotions. How do you think location-based services are capitalising on this opportunity?

Andy Ellwood:

The real currency that all of social media and the digital web trades in is social validation. The real core of why people share is because they are wanting to include others in their story and invite them along. There are so many discounts, deals, and coupons out there that it is no longer a competitive advantage. Flip open any service these days and there is some way for you to buy one and get one free. But what Gowalla is striving to do, and what I think you will see more of in the future, is create real meaningful experiences that have stand alone value whether or not you got 10% off.

Sales and promotions are the most popular types of information that mobile consumers are looking for when engaging with location-based services. What new trends have you witnessed in this arena?

Andy Ellwood:

Sales and promotions are the most popular types of programmes that brands are currently running as they are looking for ways to engage around location based opportunities. But, I wouldn't go so far as to say that it is the main thing that consumers want. We are working with a lot of brands right now that have run a discount, deal, or coupon with limited success and are now looking for a deeper engagement and one that isn't just based on lowering the price of the goods or service.

It is highlighted that the LBS market is highly fragmented. Can you elaborate on challenges associated with monitoring location-based engagements across multiple locations and conducting ongoing competitive analysis for traffic and engagement? How should travel companies go about this?

Andy Ellwood:

Like all things in social media and the digital web, what you put into it is what you will get out of it. There are services that are great for deals and there are services that are great for social. There are services that are good for content and there are services that are good for engagement. Different brands are going to work better on different services. If your brand truly has a unique voice, pick the services that allow the voice to come through the most and in a way that accomplishes the goals that you've set out for yourself.

Local deals are increasingly an integral part of the mobile shopping experience. Can you elaborate on what has been your focus when it comes to m-commerce? How are you looking at this arena?

Andy Ellwood:

It is the noisiest space out there right now and not something that we are pursuing. The engagements and experiences that occur with Gowalla are not based solely on "what will you give me" but on "what is my story?" If it is just based on the discount, deal, or coupon the engagement ends when the gimmick does. The stories we tell last a lot longer.

Location-based technologies are changing the way consumers engage with travel brands. How do you think travel marketers are trying to make the most of the data that is being generated through location-based service apps?

Andy Ellwood:

There are two questions that I ask all of our partners as we start collaborating on how we should be working together:

1) What is the experience that you are looking to create?

2) Where are the places that you want that experience to exist?

From these two questions, we are able to work backwards into which of Gowalla's features and branded engagements will make the most sense for their brand. The goal is for the experience created to be something that will sought after and shared. Brands have the opportunity to create stories and invite their customers to be a part of them. By curating and creating experiences that are consistent with their brand voice and the places that should be associated with that brand voice, the brand is taking the interaction with its consumer from an ad to an interaction.

A recent study found that found consumer brands with brick & mortar locations missed more than 70% of local customer feedback. This “local blind spot” is the direct result of the exploding consumer adoption of mobile, social, and location-based services. How do you think businesses can make most of the opportunity when consumers share their location and generate content while being at the same location?

Andy Ellwood:

Listening on a local level is best done by those on the local level, not from a corporate office. Empowering the folks on location to take their local brand into their own hands is a huge deal. Each location on Gowalla and other location based services has its own page that can be claimed, customizsd, and monitored. There are thousand of businesses around the world that have their location page(s) open for frequent monitoring and to look for opportunities to engage and interact. The more you care about your customers experience in the digital world the more they'll care about experiencing things with your brand in the real world.