Location based services will really start to fly with Fire Eagle

This week Yahoo! announced that they now know where you are… well as long as you give them permission first with their new Fire Eagle location based services (LBS) platform.  

Isn’t Fire Eagle really another term for describing a phoenix… as in the rising of the Phoenix - or is that a bit too ironic… or iconic for them given everything they’ve gone through with Microsoft this year?

Marketers should be really excited about this new platform. Besides making social networking kinda creepy (as blogged here last November), it adds context and relevance to your online ads.

Adding location (aka relevance) to an online behavioural targeting program attached to a CPC (cost per click) or CPA (cost per action) model is an online marketer’s wet dream. 

The way Fire Eagle works is that you either tell it where you are (country, city, town, zip etc…), or give permission for GPS enabled devices to do it on your behalf.  Fire Eagle will then publish your location information to the services that you have approved – whether it be a restaurant review site or facebook. Relevant ads will follow.

The neat thing about this new service is that it is completely open to the development community with a robust API – which means you can add geo-specific information to virtually any web service you want. It could be as silly as tracking where your friends are on the way to Collingwood for that weekend getaway on a google maps mashup. It would be like getting directions then seeing where people are relevant to those directions.

Already over 50 services have adopted Fire Eagle’s platform into their own offering including Six Apart’s blogging service Movable Type, messaging platform Pownce and neighborhood news site Outside.in

Whether or not this service will compete with Apple (they have similar services on their iphone platform) or the upcoming Google Android platform or becomes a complimentary web service to the above remains to be seen.

I’m not sure people really want everybody to know where they are at all times… but fortunately you can control your own settings – even manually update location to defer people from where you actually are…. like saying your current location is your home address where you are “working from home” instead of announcing that you are actually on the golf course AGAIN on a Friday afternoon