Location-based gaming and mobile applications have skyrocketed in popularity over the last year.  Foursquare, a site that allows you to “check in,” or indicate online your real-world geographical location, has really taken off as well as other check-in sites like Gowalla and Loopt  which are also enjoying success. One week ago today, social networking giant  Facebook decided it was time to enter the fray.   Here’s what Facebook’s new location-based check-in program “Facebook Places” entails, and why we think you should check it out.

Places Features

Facebook Places has two major functions:

1. Sharing where you are:  When you check in, your update will appear on the Place page, your friends' News Feed and your Wall.  You can tag the friends you're with so they can be part of your update.  You’ll also appear in "Here Now" to friends and others nearby who are also checked in.
2. Connecting with “friends” that are nearby.   You can browse status updates of friends checked in nearby.  After checking in, tap "Here Now" to see who else is checked in where you are.

Facebook is also catering to advertisers, encouraging businesses to create their own Places.  This is what Facebook said to their advertisers in its how-to guide:

Places creates a presence for your business’s physical store locations- encouraging your customers to share that they’ve visited your business by “checking in” to your Place. When your customer checks into your Place, these check-in stories can generate powerful, organic impressions in friends’ News Feeds, extending your brand’s reach to new customers.

Although the data on location-based social networking is scant, and the jury may still be out, location-based marketing as a whole is on the rise.  With smart phone adoption growing exponentially, more and more people are searching Google, Yahoo, Bing, etc. and purchasing services and products while on the go.  Converting sales from location-based social networking is in its fledgling stage, but it will likely gain traction alongside location-based online marketing.    Although it’s too early to tell how big a success Places will be, we think that you should bet on Facebook, location-based social networking and check in to check it out.

Final Note

Places shows promise, but it also raises some concerns regarding privacy.  The difference between Facebook’s check-in functionality and Foursquare’s is that Facebook allows its users to tag other users even if those other uses haven’t checked in.  This means that you can be checked in somewhere even though you’re not actually there.  You can even be tagged in mobile photos without having checked in.

You do have recourse, though.  Click here to see how you can edit your privacy settings for Facebook Places.