For many retailers and consumer brands, driving foot-traffic into stores via location-based mobile marketing services is all the rage.  A handful of interesting concepts are being experimented with in the LBS mobile marketing space, but other than personal navigation (like Google Maps, TomTom, Garmin, etc.) there’s more hype than actual results when it comes to this use of location-based services (at the moment) for selling product.

In fact, a recent Forrester Research report recommended, largely to the chagrin of die-hard, location-based social networking enthusiasts, that marketers should consider using alternative means of mobile engagement if they want to reach enough consumers to make mobile marketing worthwhile.  Specifically, some of the problems with the current state of affairs in LBS-centric mobile social networking include:

Application fragmentation – There are many LBS mobile social networking apps and a fair amount of confusion among non-techie consumers.

Lack of market penetration – Even the hottest LBS mobile social networks and mobile gaming companies lack the “reach” and volume to move the needle for retailers.

Frustration around cheating and limiting game dynamics – Many mobile social apps fail to scale because of the cheating loop-holes that often undermine a goal of a retailer or brand to sell more product.

The objective in some mobile location-based games is based on a social currency that can easily subvert the currency of retailers and brands – too much repetitive, inane behavior that doesn’t reinforce brand messaging or create genuine product desire = wasteful at best, harmful at worst.