The Year of LBS
According to Positioningtechniques
Since the early 90s the interest in Location Based Services (LBS) has increased… More and more companies acknowledge that location information can increase the average revenue per user.
But has anyone the slightest clue about how to make money from this service? A resounding NO seems to be the clear answer for the moment. But why?
Well, another article in ReadWriteWeb states that this (2009) is the year of Location Based Services. The rest of the article is quite informative about how the technology is progressing. Consequently, the services being launched to capture this market are also increasing in numbers. Admittedly though, it does say that: “..as prevalent as LBS technology is today, it’s still in its infancy.” Here, here. If anyone seems to be forging a path through this youthful area it’s probably the multitude of apps being built on top of the iPhone.
Speaking of hardware on the otherhand, there are of course the numerous GPS companies out there who are trying to put a spin on LBS but as yet no clear winners have emerged yet. Illustrating where the next MC Donalds is or the closest petrol station is a good start but hardly worth paying for. And considering these are the ones behind maps it’s difficult to believe that they haven’t even come up with a paying service. That begs the obvious quesiton what hope is there for the rest of us?
Unlikely leads from the porn industry
However, there is a little silver lining on the horizon becuase online web sites/applications are striving hard to make ground on this ellusive industry. The most popular one (or successful depending on user numbers but note, not necessarily profitabe) may be FourSquare. If taken from another perspective, on-location games may be the equivalent of porno sites being noted for their innovative measures in sniffing out where the money trail begins or for want of a better expression – from exploiting vigirin markets.
We’ve been asked this a thousand times. How will you make money out of video guides? Since our guides are focused on specific locations this would then qualify in that same realm that everyone much higher up and better placed is already struggling with: how to value our services. And the answer is we still don’t know. So, if anyone does solve this mystery soon please pass on the wisdom for it will surely come in handy to fend off the interrogators.