cloudsourced

Google Latitude has been out for a few weeks and now the furore seems to have died down, its time to take a less sensationalist look at it.

Google is Not a Social Network and Latitude is not a Finished Product

To me it looks like they’ve been waiting for other apps to soften up the public to sharing their location and now they’re gently venturing into what can be a very contentious area, and I’m sure they were expecting the negative and downright sensationalist press they received.

Something that shows me where my friends are and their Google update status is essentially useless, unless its opened up to third party apps – very few of my friends/family/associates actually have a Google account or update their status.  If they do they use Facebook or Twitter; a location enabled social network should facilitate socialising and right now nobody actually socialises on Google, they do it on a proper social network. 

So what is Latitude? Its a first step: they need users to get used to sharing their location with Google, learn how to process this data effectively and then figure out how to monetise your location.

Latitude’s strength is Google’s strength, the Google brand.  People use Google, people trust Google and I’m a classic example: I let Google store my search history (you do know they keep your search records don’t you?), I use GMail so they have access to my email data, I even have a few documents up there in Google Apps, and now I’m playing with Latitude so they also have my location information too.

(If you think that’s scary, I accidentally gave Ed Parsons a business card with some of my hair stuck to it.  Yes, they have my DNA now.  Just imagine what they are doing with that.)

I’ve made the point that Google is not a social network, and I really believe they don’t want to become one either.  What they do want is your location data, so they can target better adverts at you.  Latitude will provide some data right now, but nowhere near enough for a fully fledged location targeted advertising network. 

Latitude Will be Opened up to Third Parties Via an API

I’d bet my house on that point.  The success of Google Maps is based on the exposure of mapping services to third parties via the APIs, not just its own market share.  They will certainly attract GMail and Google Docs users to Latitude but even that reach has its limits; on my last check, precisely two of my lengthy GMail address book had signed up for Latitude.  They need third parties to extend user reach and turn location targeted advertising into a profitable business.  

How Google Plan to Monetise Your Location

Well, according to the patent they’ve filed here, its as simple as this:

Google Targeted Mobile Advertisements

So there you have it, Google’s ultra secret method for monetising your location data looks like it was drawn on the back of a beermat.

Latitude and Gears provide the location data, funnel it through the cloud and mash with the AdWords system.  Easy.