What is Facebook Places?

It’s Facebook’s new location-based service (LBS), built on a Bing Maps platform, and it’s a giant twist in the race between all the major search engines and social media platforms to perfect local search capabilities. LBS allows mobile smartphone users to broadcast out via Twitter, Facebook, or LBS-specific platforms where they are at any particular moment, and what they think about it.

Facebook’s version is similar to popular apps like Foursquare and Gowalla, where users “check in” via their smartphone wherever they go, broadcast their whereabouts on Twitter, and sort of compete for titles by spending the most time at a particular place (who wants to be mayor of the 45th St. McDonald’s?? I’m personally the mayor of Masterlink Interactive and DFWSEM Dallas Fort Worth Search Engine Marketing Association ). If you have a Twitter feed, and if you have noticed an increase of one-line “I am here”-type tweets (helpful or annoying, depending on how you use Twitter), you can thank LBS.

The appeal is obvious: Let’s say you’re at a huge shopping mall—LBS can help you meet up with friends who happen to be there as well. Or let’s say you go to a concert. You “check in,” and your other LBS-using friends who you didn’t realize were at the same show see it. Commence arm-in-arm anthem-swaying.

What’s different about Facebook’s version?

The easy integration into its pre-existing platform makes Facebook’s version a natural development. Whereas Foursquare and Gowalla have to piggyback off of unattached third-party technologies like Twitter, Facebook can tailor its product specifically to seamlessly integrate into the ever-evolving strengths of its site, like newsfeeds and user walls.

Furthermore, half a billion people already use Facebook, making it far more likely for this sort of LBS usage to hit critical mass. Foursquare and Gowalla have really just been early-adopters apps, popular mostly in the tech crowd. Facebook could do for LBS what Apple did for mp3s.

Why does it matter for businesses?

Basically, it brings companies and regular Facebook users much closer together. Your friend “checks in” at a coffee shop they like, and Facebook posts it on the Places page, the customer’s wall, and the customer’s newsfeed. It’s free publicity—and a link back to the cafe’s Places page, where they can promote themselves with gusto.

Right now, most companies on Facebook have carved out their niche via a Fan Page—the profiles we talked about last week that allow businesses to connect and converse with customers, and broadcast information and announcements. If you haven’t started a Fan Page for your business yet, we highly recommend it.

According to Search Engine Land, most business Fan Pages will eventually morph into Facebook Places pages, with a heavier emphasis on maps and real-time updating. A local search function will eventually be integrated in, as well.

In other words, your Places page registers you as a dot on the map. It’s an important dot.

How can I capitalize on this?

Let’s say you’re a Thai restaurant in Dallas, and you announce a big one-day discount on pumpkin curry on your Places page. It’s a smashing success, and Facebook-using curry cravers are beating down the door to get their fix. If several of them “check in” and comment about the discount, it’ll create a buzz on Facebook that spreads your brand and attracts more customers.

Furthermore, Places can let you keep an eye on your competiton (what kinds of deals and discounts they’re offering, and what kind of feedback they’re getting). Pay attention, and who knows what you might learn.

And if you’re really savvy, you could find ways to offer incentives for Facebook users to stop by and check in. The possibilities are endless.