Tell your friends where you are by checking in online

By Andrej Sokolow Jul 11, 2011, 19:12 GMT

Berlin - Everyone is familiar with the use of online check-in facilities for flights and hotel rooms but big-name companies such as Foursquare and Facebook have come up a novel new use for the concept.

It is now popular for social network users to check-in and allow friends to know their exact location in case they happen to be in the immediate area and wish to meet up.

American Damien Patton believes the new location-based service (LBS) will prove a hit. He cites the example of sitting for hours bored in an airport without realising that a close friend was in the same predicament nearby. This frustrating experience spurred former racing mechanic Patton to create the 'Banjo' app, which allows users of services such as Foursquare and Twitter to display their current location on a map.

The New York company Foursquare has became one of the pioneers of LBS technology since its creation in 2009. Co-founder Dennis Crowley created a social media game to allow users compete against their friends to check in at various locations.

Earning badges allows users to claim they are more social than their friends while elite badges permits what Foursquare considers 'the best of the best' to stand out. Regular visitors to a location are crowned with the title 'mayor,' which a user gets by checking into a venue the most times compared to others in the city.

The service can only be used on a smartphone to prevent users from checking in from their desktop. 'It sounds crazy but people are prepared to do quite a lot to earn these badges,' says Crowley.

Localities in New York and Los Angeles are now using Foursquare mayorships as a way to give out special deals like free beer or meal deals and the idea continues to expand. In return, the companies learn valuable marketing data about their customers, as long as they consent to providing the information.

'Some businesses want to be notified when a regular customer checks in at their premises so that they can provide them with better service,' explains Crowley.

The LBS concept appears to be a hit with consumers. The number of Foursquare users has jumped from 4 million in February to 10 million now. However, this figure is dwarfed by the 700 million users of Facebook, which introduced its rival 'Faces' LBS last year. Facebook Deals also allows users to learn about bargains and offers in their area.

Social network companies have moved to allay privacy concerns about LBS, pointing out that many of the features on their products required active consumer consent in order to function. But some still have their doubts that enough is being done.

'In principle, it's a risky technology when it comes to privacy,' says Johannes Caspar, Hamburg's data protection supervisor. He is particularly concerned by the fact that Facebook Places users can check in their friends to a location: 'The moment I tell the world where I am via Facebook, for example that I am in my apartment with someone else, there is a danger that the privacy rights of a third party will be infringed.'

Despite privacy concerns, the idea of LBS looks certain to grow rapidly with Foursquare thinking of ways to expand the service. 'It's pretty cumbersome to have to check in manually everywhere,' says Crowley. The future appears to lie in near field communication (NFC), which allows for simplified connections with a touch.