UPDATED 15:28 EDT / APRIL 14 2011

Check-Ins Are Hot, But Privacy Issues Cool Things Down

Location-based services are dubbed by some to be the next stage in evolution for mobile and social networking, but some fresh research indicates these claims are not backed by user interest. Web marketing agency White Horse has just released some new stats suggesting just that – according to the company more than 60 percent of smartphone users are still not using g location-based services, and for a number of reasons.

“Most of the non-users who do know something about this type of app are either “not interested” (56%) or “have concerns” about them (24%).”

Will Reese Ph.D, cultural anthropologist and Director of the Digital Futures Group at White Horse says most consumers have privacy concerns as well as a “difficulty understanding the benefits of location-based services.”

White Horse’s findings also indicate that heavy social media users also tend to be the ones using location-based services, and even calls this segment as an extension of social media. The agency recommends location-based service devices to analyze customer behaviors and needs via social media to optimize their product – a big data approach many has taken before, far beyond this space alone.

Research firm Ovum too has an opinion on location-based services, and particularly “check-in” apps. Dubbing the likes of Foursquare as an one of the most important developments in mobile social networking, the research firm noted that too much hype may undermine these services’ outlook before they even had a chance to really take off.

As an ultimate combo of advertising and social networking, many companies are working hard to realize the potential of this still young concept. One of them is JiWire, and the WiFi hotspot service provider who harnessed its location-based ad network to help Japan and signaling locals passing by certain location the proximity of the nearest Red Cross center.


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