3 Ways Facebook Places Will Change the Internet

So they’ve finally gone all in: Facebook has launched Places, their internal location-based-service (LBS) marketplace, and when the third largest (yet poorest) country in the world does something new, the world watches.

For the moment, Facebook Places is only in the US, and still doesn’t have a writing API, but that will all change quickly. As that changes, it will have some serious implications for the Internet. Here are 3 ways in which Facebook Places is going to change the digital landscape:

1. The web just got a bit more closed

Earlier this week, Chris Anderson and Michael Wolff of Wired proclaimed that the web is dead. Their reasoning was that as we use apps more and more to consume content and interact with others, the internet becomes “less about the searching and more about the getting“.

Well, with Facebook Places, your run-of-the-mill Facebook app will start doing what you once needed a Foursquare, Gowalla, and Yelp app to do. This means Facebook has secured much more of a stake in how the net’s evolving.

More importantly, though, it means Facebook users have that much less of a reason to go beyond the walls of Facebook. And that is precisely the behavior Google should be worried about.

2. LBS is going mainstream

The advent of Facebook Places may be the big push we need to take LBS mainstream. And the way LBS will reach that level of adoption is through its Facebook smartphone apps.

Social media apps and consumer engagement with them is the reason that smartphones will push LBS mainstream. Those little apps are gold and consumers are infatuated with them. Such apps will let the marketing industry take LBS advertising beyond mere SMS spam.

Now, sites such as Foursquare and Gowalla already offer apps and user-experiences that make LBS advertising possible, but they don’t quite yet have the user-base. As Michael Lazerow of AdAge points out:

Foursquare and Gowalla combined have just a few million users. Facebook has north of half a billion. When Facebook gets into a market, they bring everyone. Literally, everyone.

So while Foursquare and Gowalla have had potential LBS technology all along, they lacked the audience. Facebook, on the other hand, has had both the audience and the advertiser base all along. Now that they’re rolling out the technology, LBS advertising (via Facebook apps, of course) shouldn’t be too far behind.

3. Foursquare & Gowalla condemned to mediocrity

In a nutshell, Facebook Places won’t kill off these services completely. But it’ll hinder their growth potential and dash any acquisition hopes they might have had (that is, at least any hopes of Facebook acquiring them).

On one hand, many users will simply choose not to integrate their current LBS network (e.g. Foursquare) with their Facebook network. We’ve already seen this in how many users use Twitter very differently than they do their Facebook status updates. So these pre-existing LBS networks will probably retain an entrenched user base.

On the other hand, these incumbent LBS networks will probably have trouble growing their existing user base. Given Facebook’s scale and reach, for example, many users will discover Facebook Places before they discover Foursquare or Gowalla. These users, then, will probably be less likely to see the value in joining a separate LBS-only network.

You see, just like Twitter, Foursquare and Gowalla are more of individual features than stand alone social networks. This much is evident in how Facebook Places is usurping their entirely functionality as a mere feature.

So these networks will continue to be relevant, but only marginally so and for what will be a stagnant if loyal user base.

Taming the wild wild web

The Internet is in its 20s. It’s starting to grow up and past the awkward, experimental years of its teens. It’s time for the Internet to get down to business.  Companies can no longer launch just to say they did so, but they will launch to have an answer to their investors’ questions of, “How will you make money?”.  Part of that maturity will lead to an increased competition between close competitors and there will be attrition.

So while Google and Apple try to fence us in at the OS level, Facebook seems to be moving to middle-man them (and might be working on their own OS). After all, if users only use your OS to run someone else’s apps, who really controls those users? Facebook clearly intends to address that weakness.