A recent report from Forrester reveals that only 4 percent of adults online use location-based applications. This does not necessarily mean that all the buzz and hype surrounding the emerging service-type is hot air.
Location-based services (LBS) is a strong way to target 19- to 35-year-old college-educated males who are influencers. Just look at the extraordinary rise of Foursquare.
Foursquare and other location-based marketing tools are simply not mainstream, yet. However, you can see the need in the rise of dynamic mapping applications and with the overwhelming interest in the mobile web, which increasing relies on GPS and location based services. With the growth of the mobile web market, as seen in the iPhone and Android devices, more users expect to have instant access to LBS to find directions and look up information within local proximity.
Even websites that do not use LBS such as Facebook are rapidly incorporating such services into their online offering. Facebook has confirmed that they will be launching location-based features within their site shortly.