Last week Forrester released a report advising most marketers wait to use location-based social networks (LBSN) as only 4% of the US population is currently using platforms such as Foursquare (the current market leader), and that the networks skew heavily male. They advise that brands that target young males experiment with the services and other brands adopt a “wait and see” approach.

I couldn’t disagree more. Here are my 5 reasons why it’s smart to start experimenting now.

1. First Movers.

There’s something to be said for getting a head start on your competition in the digital space. Brands like Starbucks, Dell, Pepsi, and Nike have all taken advantage of the emerging channels and reaped the rewards of building a strong early foundation with consumers.

While you should not rush into a new tool without understanding your strategic goals and how it integrates with your business objectives, experimenting with emerging technologies that are opt-in and potentially have a direct customer impact is smart.

When Facebook opened their gates to the general population in 2006 they had a small user base of university students. Four years later they are a behemoth. Twitter adoption rates have been increasing exponentially year over year since their launch in 2007 and the tool is now considered a “must use” for social business. Considering Foursquare launched about a year ago, can we expect to see the same type of growth curve as the early adopters begin to influence the early majority? (see “Crossing the Chasm” adoption curve)

2. Google. Facebook. Oh My.

Location-based services are not limited to the current apps we have been hearing about. Facebook has expressed they will add a location-based offering soon, Twitter has added “Tweet with your location” to their service, and the biggest news is that Google is adding a Places API to their eco-system, as well as adding LB data extensions to their mobile advertising product.

LBSN will become mainstream sooner rather than later, and it will be the big players, not the niche networks that will drive the adoption. Testing and learning now, before it becomes ubiquitous should be something on every marketers radar.

3. Data and utility.

There is an enormous amount of insightful and actionable data that can be gleaned about your customers and prospects from mobile & LBSNs. Eventually this data could be used to inform inventory control, staffing levels, consumer tastes and trends, etc. The data can also be used in loyalty programs, to identify influencers, test new products, and as real-time service focus groups.

Companies already testing the waters include:

Nike with True City; Starbucks with their Foursquare offers; The Pepsi mobile branded app; and the City of Chicago with their Tourism campaign.

4. Sales, Coupons, Offers, and more.

Part of the Forrester analysis identified that mobile couponing is widely successful with the users currently using the services, which is interesting as the base is primarily young males, not the average coupon-consuming demographic. Gone are the days of clipping coupons in the Sunday paper, now you can serve relevant offers and drive foot traffic and purchase directly to a mobile device. These offers are opt-in, and contextually relevant, not SMS spam. Testing offers, tips, and messaging via mobile should be on every retailers plan for the next year.

Of course one size doesn’t fit all and ensuring that your product or service fits within the make-up of the demographic, depending on service (existing or branded), is a must.

5. Mobile usage.

Of course mobile, and specifically smartphone, usage is soaring year over year. Ignoring mobile at this point is like ignoring the Internet in 2002 because broadband wasn’t prevalent yet.

Bottom line for marketers:

Experiment. See what fits, what your customers are looking for, and where you can add value. Don’t wait until it becomes mainstream, because that will be sooner than you think and you’ll be playing catch-up.

[photo credit: john weiss via Flickr]

A lot of ink has already been written about why Old Spice owned the Internet last week, and I don’t want to rehash the various aspects that RWW has covered, and Dave Stubbs has mentioned, among others, but what I feel is missing from the conversation is how it all started. My friend Leigh Himel deconstructed what the brief could have looked like, and I think it’s worth expanding on to describe how the campaign set the foundation for success.

It all started with the insight and a deep understanding of the market and the consumer.

The objective, as Leigh rightly points out, was to re-position and re-invigorate the brand.  To do this the team needed to understand the competitive landscape, the perspective consumers had of the brand, and the territory they had to play in. The market was saturated with female unfriendly AXE advertising, and as women are the primary consumers for male scent gifts, turning that into an advantage would have been mandatory for Old Spice.

With that as the starting point the Old Spice team (with a receptive client) decided to do the obvious: appeal to women without alienating men.

Old Spice cast the perfect actor for the new positioning. A former NFL player, a nice guy, and someone who wasn’t so perfect that men would feel threatened. Genius casting. Based on, I imagine, a perfect casting brief.

The next step was to create a seriously funny commercial that turned all the cliche’s of advertising and film on their heads. “Look at your man, now back at me”. “It’s now diamonds”. “I’m on a horse”. They made a commercial that was frankly better than 90% of the TV shows it appeared alongside. I first heard of it because my partner was watching TV and told me I had to see it. So what did I do? I went to YouTube and there it was. Word of mouth at it’s finest, but it would have been dead in the water if the team hadn’t thought to seed it online first.

They let that roll and roll it did. Everyone who saw the commercial started sharing it, and a character was born.

Now what to do with the follow up? The character was a success both online and offline and while they could continue to let it ride as a TV spot, the proof was there that they could take advantage of how much the spot resonated with the folks online.

The plan was to create a new TV spot, let that simmer for a bit and then pounce. The social media marketers did their homework and decided what the right outlets were to start spreading the character. The fact they took on 4Chan and won speaks volumes about how integrated and on the ball they were. While everyone talks about how they took over Twitter in a day, they really started seeding the campaign before that. They laid the groundwork. And it paid off. Big time.

It came on my radar with @jakrose tweeting that he’d received a video reply early Tuesday morning. “Fry it up and eat it down JakRose. Fry it up and eat it down.” The network effect took over and for the next two days it was all I cared about that was happening online. The social team did a brilliant job monitoring responses and working with the creatives to write compelling copy. They didn’t just target celebrities and “influencers” but responded to comments, Diggs, tweets and blog posts that they felt fit with the character as a whole. They were obviously fully immersed in the language and cadence of the social web because their video responses contained references only a geek would love (or get). They respected all the unwritten rules of the culture and tailored their responses to match the brand, and the mediums they were using.

They embraced the mash-ups and promoted them. They let the community roll with it. They poked fun at themselves (Old Spice responding to @isiahmustafa) And they set a time limit. Any longer than 2 days and it would have become tired. Any shorter and it would have been disappointing. The mash-ups continue to roll in, with the most recent being Mel Gibson calling the Old Spice Guy.

It was brilliance that came from the initial insights and work they did a couple of years ago. And deep understanding of how the social web works.

The challenge will be what they do next and if it moves the needle at the top of the purchase funnel (awareness & consideration). But I have faith, and am looking forward to every moment of it!

[Update August 13, 2010] W+K just released their case-study of the campaign: Old Spice is now the #1 brand of body wash for men, with sales increasing 107% in the last month alone.