Mobile marketing has changed a lot in the past couple of years. Geo-targeting uses your smart phone’s GPS to find out where you are, allows you to “check in” to a location, and deliver targeted messages to you based on that information.

Leaders in the geo-targeting space include Foursquare, Gowalla, and Loopt (plus LooptStar). They are similar in many ways, but each offers a different twist on an increasingly familiar theme. They enable local businesses to find and attract consumers in new ways, such as offering coupons or special offers to regulars based on how many times they’ve come in. Like many start-ups, none have mastered the monetization aspect of mobile marketing, but there are clearly endless opportunities here.

In order to give people incentive to use the apps, various forms of social “rewards” are used that essentially turn exploring your city into a game. We are social creatures, and while some of these rewards may seem meaningless or frivolous, there is an attraction to them as they create an element of social status within communities. A large part of the appeal to people in large cities with lots of friends is to make sure you never miss the action, but I believe the jury is still out as to the real social value of this once the initial allure wears off a bit.

While this isn’t intended to be an in-depth review, I’ll discuss some interesting distinctions of each:

Foursquare – I’ve been on Foursquare for about a year now. It’s been amazing to watch the database of local places grow since it depended on the community to enter locations. Now it’s rare that I go somewhere that isn’t already there. The person who frequents a location the most becomes the “mayor” and some establishments give benefits for that position. You collect virtual badges for achieving certain things, like being in a place with at least 50 other people (Swarm) or hitting 4 clubs in one night (Crunked). You get the idea. Foursquare made a gamble by creating a new database of locations and friends, but it seems to have paid off. The most compelling thing about this is the special offers that are based on your location. When you check in somewhere, the app will tell you if there is a nearby special, or one at the place you are (a free drink for 10 check-ins for example). While Foursquare has exploded in the past year, I haven’t seen a congruent explosion of the specials offered by businesses.

LooptStar is a spinoff of Loopt, which was historically a more informational type of app. Their new entry enters the “rewards” space more heavily. The thing that LooptStar does that I believe will give it an advantage is use Facebook Connect to leverage the largest existing social network rather than wait for everyone to find their friends on yet another new one. They were later to the game, but I believe this will give them an edge in the long run. In LooptStar you become a “boss” rather than a “mayor.” But the rewards look to be more tangible than FourSquare.

Gowalla benefits from being on all major mobile smart platforms, including Blackberry and Palm. They also rely on partnerships with existing travel-related services to offer “trips” and share those with your friends. While Foursquare provides community tips based on your location, Gowalla focuses more on directly exploring your friends’ favorite locations to learn more about what they like rather than the community at large.

All of these apps feature basic sharing with your Twitter and Facebook feeds to let people know what you’re up to. Yelp has entered the space by adding check-in to its feature set and you can bet that Google is going to be all over this with its massive business database and Android mobile platform. The problem these sites have is that they have established brand and culture that make it harder to break into new areas.

While this space is fascinating to watch, it still has a long way to go. The apps depend largely upon smart phones such as iPhone and Android, which represent the minority of the mobile market. Also, I feel that any app that requires you to actively check in to a location rather than simply knowing where you are is going to appeal more to geeks and early adopters than the majority of people. It can be very distracting to interrupt your social experience. “Wait guys… I have to check in here first…”

What’s the alternative? Remember Minority Report, when Tom Cruise’s retinas were scanned everywhere he went? In that version of the future, you didn’t even need a device to tell the network where you were. Cameras were so ubiquitous that they knew anyway. Scary? A bit. Possible? You bet.

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Andy Swindler Categories: Entrepreneurship, ePiphany Featured Story, Fun, Gadget, Marketing, Social Media, Technology