Between the announcement Whrrl will check out at the end of the month and speculation over whether checking in has jumped the shark, the past week gives us pause to ponder the future and direction of geosocial, or location-based, media.
As stated previously, I liked Whrrl for its Societies (connecting users with similar check-in habits), its clean interface and its functionality. But with Groupon acquiring Pelago, Whrrl’s parent company, the geosocial service will spin off into oblivion. Groupon will likely take on some of Whrrl’s better features, but since Groupon already has some location-based elements to it, one could argue redundancies existed.
Way back when I started studying geosocial media, I predicted some players would fall by the wayside and others would be acquired by other companies with similar interests. Whrrl had a low user base and, despite some pretty decent promotional ideas, more prone to being rolled into something else. They may have been the first, but they won’t be the last.
Jeffrey Kirchchick of SCVNGR, who first let me know about Whrrl’s demise, likes to (accurately) say the future of geosocial goes well beyond the check-in. You can find a more extreme position via a RWW guest post by Goby CEO Mark Watkins declaring 2011 as the year that check-in died. Leaving aside the very legitimate question as to whether it’s in Watkins’ self-interest to declare the check-in dead, he notes:
In July 2010, Foursquare had 2 million users performing 1 million check-ins per day. By the end of the year, that number had risen to 5 million users performing 2 million check-ins per day. Impressive growth, yet this means check-ins per user declined from 0.5 per person to 0.4. It also suggests that many of those five million users aren’t active.
Between that and poor data on Facebook Places — always the weakest of location-based offerings — Watkins explains that the mere art of the check-in may not be enough to sustain these apps. It’s a great point. Yet the article has, at best, a flawed headline and, at worst, flawed assumptions.
Let’s say I own a bookstore. In the span of a year, the number of customers coming increases 150 percent. And my sales double. True, my average sale nets 20 percent less than the previous year, but … did I mention I had twice the sales of my previous year? Would I declare my bookstore dead? Of course not. It’s silly overstatement and cherry-picking of numbers. If I were a smart bookstore owner, I’d work with customers to see how I could better meet their needs … and I’m pretty sure geosocial media companies are smart enough to do the same. It’s too bad Whrrl won’t be among them, but I suspect these companies have plenty of sharp mind to help them navigate solutions.