A lot of companies have been spending a lot of time and effort in location-based services over the last couple of years. Whether it’s local search or check ins, the race to get people connecting with local businesses is on.
One ongoing challenge has been identifying where consumers are. GPS has issues with power consumption, time to first fix and doesn’t work indoors. Cellsite-based location is not precise enough. Even WiFi triangulation, which is the most effective way currently, isn’t precise enough given current deployments. In densely packed urban areas, you can still come up with a hundred or more businesses that you would have to pick through.
One way that Google (or Facebook or anyone with a strong brand) could solve this problem is to send WiFi beacons to local businesses. This is roughly how it would work:
- Routers are sent to businesses. The MAC address of the router is recorded and correlated with the address that it’s shipped to.
- The business receives it and plugs it into a wall outlet.
- The router then transmits its information to nearby phones.
- Those phones can narrow the list of potential businesses based on that information.
This doesn’t even require the business to have an Internet connection. The only requirement is that the device be powered. At scale, the device could be custom designed to eliminate the Ethernet jacks on routers. This reduces costs and makes the device look less intimidating to folks who aren’t tech savvy. If you wanted to get fancy, you could shape the device so it didn’t look like a router at all — maybe something like the Open sign that Google is giving away. This would have the added benefit of branding to the business’s customers.
With a per device cost of approximately $15 and a service life of about 3 years, we’re looking at a cost of $5/year. If you sent them to 500,000 businesses (the focus should be bars/restaurants in high density urban areas), it’s still a modest cost of $7.5 million to tap into the local market.
The pitch to local businesses would be something along the lines of “make it easier for Google users to find you.” It could be presented as part of a small business starter kit, complete with Google Places window decals, a guide to online advertising, personalized information on how the business is currently rated on Google and online advertising credit for use on Google. It could also serve as the validation mechanism for businesses to claim their Places page. In my experience, packages are more likely to be opened than typical direct mail pieces.
While there has been a lot of talk about NFC for searching or tagging, it would require a change in user behavior and is likely to take 2-3 years before a sufficient number of NFC-enabled phones are in use in the United States.
Not only would this sort of network enable easier local search and check ins, it could be used to generate real time maps of where the most popular places in a city are. People could also use it to generate automatic check ins when they reach selected favorite places.
If this sounds crazy, consider that Google is already testing giveaways for businesses in the Portland area as it tests its Hotpot product. Businesses can order free sugar packets, mints, magnets, billfolds and more.
The biggest challenge with this approach is the risk of bad press given the kerfuffle regarding StreetView vehicles capturing WiFi data by mistake. Although this is in no way equivalent, the media have a hard time understanding that. (Not to mention that the original issue was really blown out of proportion.) This could be offset if Google made the database open to the public. Not only would this improve results for Google applications, but could be used by a wide range of devices to improve position accuracy. It would be the equivalent of Google launching satellites for the public’s benefit.