5 Reasons Why Facebook Places Won’t Succeed

August 19, 2010 in facebook,foursquare,Social Networking with 31 Comments

Perhaps you have heard of Facebook Places. If not, your one sentence summary is this: Facebook has introduced a new service that will allow users to “check in” to places and share their location with their friends.

The majority of speculation from those watching this roll out is that it is going to destroy other location based services like Foursquare, Gowalla, Whrll, Loopt, etc. I don’t think it will, and I’ll give you five reason why I think this.

First, let’s start with one reason, and one reason only,that Facebook Places might succeed: they have a user base of over 500 million. The sheer volume of that might let it see life into 2011.

Now, on to why I think Facebook Places is nothing short of “meh“.

A terrible launch. The big announcement came in late yesterday afternoon to much fan fare. Twitter blew up with the announcement, and every social media news outlet ran practically moment-by-moment coverage. The noise was made, and people noticed. The immediate reaction was predictable, “I want to try it”, shouted the masses. But there was a big problem…nobody knew how or where to use it! In fact, out of 40,000+ total mentions that I tracked using Row Feeder, practically none of them actually talked about using the product; they only talked about the announcement and how/if this would affect Foursquare.
Twitter and Facebook Posts and Conversation Drivers around Facebook Places Announcement 8/18/10
Confusing Application Update. The official Facebook blog simply told us that it would be working in “the most recent version” of the Facebook iPhone app. According to my phone and the iTunes store on it, I did have the most recent version, but I still didn’t have “Places” anywhere on it. Once I finally did get the correct version today (which only described “bug fixes” as the update), I clicked the Places button as was met with a message that “this feature will be available in your region soon”. Just so you know, my “region” is Los Angeles. Perhaps you’ve heard of it, Facebook? I heard reports from San Francisco and other major metropolitan areas that it wasn’t available there either. Where did they launch it exactly…Duluth?
Facebook Places Was Not Available In Many Major Cities at Launch
Too Many Privacy Concerns. Let’s face it…Facebook has an issue with privacy, or at least the perception of privacy. When Open Graph was announced, everybody clamored to try and figure out how to opt out. Now that Places is here, most of the articles I’m seeing talked about are “how to” guides for shutting down Places and its sharing abilities. Facebook started off as a private network that has become increasingly public. Bottom line, I don’t think people on Facebook really want to share where they are all of the time.
Even on a Facebook Wall the Foursquare Check In is More Exciting than the Facebook Places Check In

What’s In It For Me? Nothing. I had access to Facebook Places for less than 10 minutes before I came to the conclusion that it’s boring. And by boring I mean…why in the world would I want to use it? One thing that keeps me checking in to Foursquare everywhere I go is the competition and the rewards. When I check into a local watering hole and somebody else is the Mayor…well, I don’t like it. It makes me want to come back more and oust them. Childish? Yes. Effective? Also yes. With Foursquare I also get badges for achievements. I unlocked the “Zoetrope” badge over the weekend when I took my kids to a movie over the weekend, and it made me happy! Facebook Places appears to give me…nothing. Am I supposed to be excited that I can share info with my friends? I have news for you, Facebook; I can already to that 100 different ways. What really surprised me was how benign the service looks when I check in. Look at the comparison on my wall that compares a Facebook Places check in to a Foursquare check in. +1 Foursquare
Too hard to “claim” a business. Sure, we have to keep squatters away, and having accurate business verification is important, but the process they are asking for is ridiculous. After you cerifity that you are an official representative of the business (reasonable) you are directed to a page where you are asked to fill out address, number, etc. and then upload official legal documentation like Article of Incorporation or a Local Business License (not reasonable). How many people are really going to do this? I see conversations going something like this:

Worker: Hey CEO, we really should claim our location on Facebook Places

CEO: WTF is Facebook Places?

Worker: A way for users of Facebook to check in and share their location with their friends. Can I borrow the Articles of Incorporation to upload to Facebook?

CEO: *blank stare*

All of this to say, I don’t think Facebook Places will take off. I know that everybody is predicting the end of Foursquare and other services, but as I recall from the battle of David and Goliath…David won. Just because Facebook has a massive user base, it doesn’t mean that everything they do will result in them taking over the market. Remember when Facebook changed it’s status updates and bought FriendFeed? It was deemed “The Twitter Killer“. Guess what? Twitter is still around.

My bottom line? Facebook Places was a fun product announcement to get excited about, but now it’s time to get back to reality. I’m going to start by checking in to my favorite local Alehouse on Foursquare.

About Matt Singley: I run this joint. Always looking for feedback, and if there is something you want me to write about, just let me know! Thanks for stopping by.

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http://manofdepravity.com Tyler Braun

Something else I’ve noticed is that they’ve spoken of the updated iPhone app that now includes Places…BUT I know of a mobile OS that has a huge following (Android) and they have yet to say a thing about updating that app. That’s lame.
http://joshgroth.com Josh Groth

Solid post Matt. The big one for me will be the privacy concerns (but you probably could have called that). My big question is: what are your thoughts on Row Feeder? I’m unfamiliar with the product.
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http://twitter.com/AdamRyding Adam Ryding

I completely agree with your statements. However, Facebook will eventually work the kinks out of Places. With over 1/2 billion people registered users, the company has a lot of sway. Coupled with its search capabilities, I believe Places could be devastating to other check-in services.nnThere’s only one problem: Fake Check-Ins. If this system can’t be fixed people won’t have the incentive to check-in because businesses won’t want to offer something that cannot be controlled.nnNonetheless, Facebook will try to dominate this market. nnMy recent post here: http://bit.ly/9aCchy
http://twitter.com/jcroft Jeff Croft

A lot of what you say makes sense, but I take issue with letter D, even though I generally agree that the fun of Foursquare and Gowalla is not checking in, it’s the gaming elements.nnHere’s the problem, though. Facebook has 500 million users. Foursquare has less than 3 million. Gowalla has less still. Your premise is that if you put Facebook and Foursquare side-by-side, Foursquare wins. I don’t disagree with you. However, most of the 500 million users will never put the two side-by-side. Most of them don’t even know Foursquare exists. For the vast, vast majority of people, this will be their introduction to location-based services, and they’re going to go, “okay, this is kinda cool,” not, “I won’t use this because it doesn’t have mayorships!”nnFacebook Places is going to be extremely successful. That doesn’t mean it’s going to kill Gowalla and Foursquare — I don’t think it will. Facebook has been successful in competing with Twitter, while Twitter has made great gains at the same time. These things aren’t mutually exclusive. Both can succeed — and I think they will.
http://www.webtrainingwheels.com Lucy Beer

Matt – While I personally share your sentiments 100%, I can only wish that the common sense you outline would play out in reality! However, sadly, I’m not sure if you’re right. Facebook seems to consistently screw things up but it doesn’t seem to have any effect -even the privacy issue. I think the lowest common denominator rules Facebook and probably don’t have much of a clue about the privacy issues. Those same people probably didn’t even catch wind of the launch unless they (like us techy geeks) follow Mashable, RWW etc. So when Places appears in their profile, I’m sure they’ll give it a try. And as for boring….well that sure doesn’t seem to stop people…have you SEEN some folks twitter streams and updates?! nHope you’re enjoying your ale, here’s to hoping that common sense rules!
http://twitter.com/jcroft Jeff Croft

Actually, they have been clear that they have plans to update their Android and Blackberry apps, as well.
http://manofdepravity.com Tyler Braun

Not clear enough apparently. And really that isn’t the point, iPhone has already updated, Android has not.
http://andresiregar.com/ Andre Siregar

Matt, I think you’re being short sighted here. Point A has little implication on future success. For B and E, they’ll iterate and make it better (the service is 2-day old). For C, like somebody else has said, it hasn’t put a dent on Facebook’s growth so far. And for point D, the 500 million users makes it attractive for game developers to tie with Facebook Places. It can be more than just getting mayorships.
http://twitter.com/jcroft Jeff Croft

I hate to break it to you, but that’s the case with the vast majority of cross-platform apps. Most come out for iPhone first. There are simple business reasons for this (and they don’t have to do with marketshare). If you’re an Android user, you better get used to it.
http://manofdepravity.com Tyler Braun

Oh I’m used to it, but I don’t get the idea that Facebook was clear about an Android update. I follow android stuff pretty closely and I’ve seen nothing.
http://twitter.com/jcroft Jeff Croft

I watched the video of the launch, and they definitely said updates for both Android and Blackberry were coming soon. They suggested Android users use touch.facebook.com in the meantime.
http://manofdepravity.com Tyler Braun

Touch.facebook.com is a joke. If you have an app, update it don’t make me use my browser to get a new feature that is supposedly out. What a joke.
http://twitter.com/jcroft Jeff Croft

Don’t shoot the messenger, dude.
http://www.mattsingley.com/leading mattsingley

Hey Andre, I agree that it *can* be more than just getting mayorships, I just don’t think it will. I’m sure they will iterate, I just don’t think it’s going to take off. I could be wrong, time will tell.
http://www.mattsingley.com/leading mattsingley

Yes, Goliath could win this one, and 500MM vs 2MM is daunting…I just don’t think the core of Facebook will adopt Places as-is. With some tweaks (that no doubt will come) it might launch, but I’m still not holding my breath. But…it’s barely in its sophomore day of life, so it could still take off.nnAs for an introduction to LBS…I know! I feel like the ideas is old school, but I know that a lot of the FB base will wonder what is up with this new fangled check in idea :)
http://www.mattsingley.com/leading mattsingley

Hey Lucy! I know a lot of people still have no idea what Places is…I’ve had a half dozen tweets directed at me asking, “What are you talking about? What is Places?”nnRe: the lowest common denominator…sigh….you’re probably right. But I can hold out hope that common sense prevails :) nnAbout the ale…I was actually sipping a pint when I read your comment earlier this evening! And yes, I was enjoying it a lot.
http://www.mattsingley.com/leading mattsingley

Fake check ins: I think they will plague Facebook like they did when Foursquare first came out. Most people that I saw checking in today were not checking in to businesses…they were checking into their homes. I suppose that is a “real” place, I just don’t know if they will catch on or not. And yes, FB has plenty of sway. They can anger a couple hundred million people and still have the majority happy….crazy!
http://www.nikao.ws Vince

F. Facebook on Android sucks and gets little if any attention from them. nLBS requires a solid mobile app and Android looks like it is going to be the dominant platform pretty soon. The FB app on Android completely blows… third party apps are scary for devs to build because FB changes their APIs and deploys random updates over night that could cripple your app leaving you dead in the water with no telling how many hours it will take to update.
Buffalo Photographer

I agree with you that it had a really weak launch. I also agree that I wouldn’t check in on foursquare nearly as often if it wasn’t for the mayoral-feedback-loop. I’m also not going to upload my legal docs to prove ownership. That being said, facebook is a big fan of the guess-test-revise theory of application development. They put something out there, get a ton of feedback, sort through it, and eventually concede to the masses. They know their platform is super sticky, I’m sure they laugh at the 1,000,000 Strong against [facebook policy] groups, knowing that as soon as the cede, they’ll regain the loyalty of those users. A shitty launch doesn’t equate to product death, especially when you’re the 800lb gorilla in the room. How many people still have iphones? That launched without copy and paste, or time-sharing (multi-tasking), both of which are features that have been around since the 70s.
DaffronMkt

Facebook should have focused its efforts on their initial privacy concerns prior to creating more by playing catch-up to FourSquare & GoWalla. The company has notoriously not taken it upon themselves to educate their users of the possible issues and safety involved with using the service. Facebook is a great when used correctly; however, too many people are not educated to the safety aspects. As an anti-stalking advocate I speak to stalking victims daily who did not understand the increased danger they were placing themselves in by participating in social media with a misguided thought that the medium would keep them safe.
deelirium

OMG finally someone out there who imagined the same exact worker/CEO conversation as I did. Seriously, Facebook? The marketing people – who are the ones running Facebook pages – are NOT the legal/leader people who have the official documents. Not even Google Places is this difficult (and let me tell you, Google Places is a b**ch to claim locations on).
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http://www.mattsingley.com/leading mattsingley

Excellent point. It sounds like you really know what you are talking about. I’ve been psuedo-stalked via Facebook/Twitter before but nothing incredibly dangerous. Agreed that privacy and education should be a real focus before making it even easier to be found.
http://www.mattsingley.com/leading mattsingley

That’s a fair comparison, and one that you probably know I’ve been passionate about in the past. How could the masses swarm to something (iPhone) that wouldn’t even do the most basic functions? It was new and shiny, and much kool aid was consumed. I supposed to say that it will happen with Facebook Places as well is totally fair.
http://twitter.com/KellyKapowsky Kelly Sheehan

Places in its current state may not be state of the art, but I agree @Buffalo Photographer, we’ll wait and see … Let’s face it: Sometimes FB screws the pooch, and it takes them a while to recover. Sometimes they don’t redeem themselves.

As we compare current geo apps with Places, particularly Foursquare, which has its cult / loyal following, it does make you question the long-term viability of the smaller guys. The proposition to make this work for Facebook lay in ad revenue, hypothetically via big brand buys and on the flip side via self service.

Maybe the bigger question is while we ponder the success of Places, much like FriendFeed acquisition you so appropriately mentioned below, do you think Foursquare and FB will be “working” together in the near future?

One stop shopping is great as long as I get the best deal and experience as a consumer.
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http://twitter.com/LocalDoggy Dale

Hello Matt. I appreciate this post and your view on this. I’m glad to find someone out there that holds the same view on Facebook Places as I do. I could not agree more that there is no incentive. I understand why Facebook created this, but I really don’t care to see them become the Walmart of social media. Leave some things along Facebook? I will stay loyal to Four Square. I also agree with your point that about the incentives to check in on Four Square. Part of my job is to inform and help businesses in my niche to take advantage of the opportunity with Four Square.nnAlso, I do get a little annoyed when I lose a mayorship even with no incentive. I ran into the guy on Twitter that had ousted me from one of my mayorships. I promised him I would regain it…but it was all in good fun.nnOh, one last point. I know you LA folks consider Minnesota to be fly-over country, but what’s wrong with Duluth?
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5 Reasons Why Facebook Places Won’t Succeed

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