Posts Tagged ‘privacy’

Are Consumers Ready for Location-Based Services?

Despite the buzz around location-based services, I have been ambivalent, if not skeptical about the technology.

As much as social media has encouraged people to share information, I have not been convinced there is the same amount of enthusiasm for broadcasting your location.There’s the issue of privacy, as well as few “rewards” for telling the world your location.

In many respects, however, being unconvinced about the potential of location-based services has been like a Don Quixote-like experience, particularly when you’re an enthusiastic member of the social media community. The idea that you don’t really buy into the next new thing seems almost sacrosanct.

It was interesting and, to be honest, encouraging to read Joshua Brustein’s column in yesterday’s New York Times about whether the excitement surrounding location-based services is being driven by technology companies and investors, while consumers only seem modestly interested.

Brustein’s column came on the heels of a Pew Internet and American Life Project survey that discovered only 4% of Americans use location services like Foursquare and Gowalla, compared with 5% last May. Even among smartphone-toting 18 to 29-year-olds, only 8% use location-based services.

It may just be that location-based services won’t be widely embraced. Or it could be that location-based services have yet to find their sweet spot. However you want to explain it, the reality is location-based services have failed to live up to lofty expectations as social media’s next hot thing.

Perhaps Facebook’s entry into the market will change things, particularly if consumers are attracted to the link between the company’s Places and Deals services.

Or maybe not. It could be that most people have no use for location-based services despite the best efforts of companies and investors.

After all, you can lead a horse to water but you can’t make him drink.

Could Privacy Concerns Kill Social Media?

When it comes to privacy, the pendulum has swung dramatically over the past 20 years.

It has gone from a world in which only friends and family (and the government) knew your personal details to a point in which millions of people happily disclose public information on social media services such as Facebook, Twitter and LinkedIn.

The willingness to talk about everything and anything has jump-started the growth and interest in social media by making it a dynamic, engaging, informative and data-rich environment for users and, as important, marketers and advertisers.

When you have in-depth knowledge of consumers, there’s no lack of possibilities or opportunities to capitalize on it.

But there is an elephant in the room. A growing concern about online privacy, sparked by Facebook’s latest efforts to leverage the personal information of its 500 million users to deliver more relevant advertising.

It has sparked a renewed discussions about the information collected by online companies, including major players such as Facebook, Twitter, Google and Yahoo!

Suddenly, a growing number of consumers who were oblivious to how much information they disclosed are looking at what they are saying online, and how that information is being used. In many regards, it has been a wake-up call after years of being asleep at the privacy wheel.

With the pendulum maybe starting to swing away from total disclosure, the question is whether growing concerns about privacy will take the zing out of social media. If people are less enthusiastic about publicly revealing a wealth of personal information, does that make social media less interesting, including to advertisers who have been gorging at the full-disclosure buffet?

Given the current behaviour of consumers, it would be extreme to suggest that privacy concerns will kill social media but they could make social media a less interesting landscape.

If companies such as Facebook have to provide consumers with more control over how their personal data is used, does it make these services less compelling to advertisers? If that happens, does social media becoming less viable as a business opportunity?

What do you think? Will privacy kill the social media “golden goose”?

More: For another interesting take on the privacy issue, here’s an interesting article in the New York Times about Bynamite, a start-up that gives users more control over the personal information they disclose.