Over the last few days, there has been a great deal of talk surrounding Facebook’s immanent “check-in” to the geolocation space.  Sources close to Facebook have admitted that users will soon have the ability to tag their location within their status updates.  So, is this feature a direct threat to location-based applications like Foursquare and Gowalla?  Probably.  But… maybe not.

It appears that Facebook will be launching its location service in the form of a custom application for McDonalds.  What’s interesting about the discussion surrounding the McDonalds example is the speculation of how Facebook will monetize this feature – especially since it is launching with one of the world’s largest advertisers.  Initial signs point to Facebook not making money from the actual application or functionality, but from an associated media buy.  A lot of the impact Foursquare and Gowalla will feel from this move will be determined by just how “local” Facebook decides to go.  If Facebook allows every mom and pop under the sun with a Facebook page to create a “Place” for their business, Foursquare and Gowalla could be in trouble.  After all, a majority of the locations in those apps are user created and not part of huge national/multinational chains.  If, however, Facebook decides to keep the locations to major partner chains as an incentive for media buys, the current location players may be ok.

It’s also unlikely that Facebook will incorporate a game atmosphere or advertising model directly within the mobile application.  People battle to be the mayor of locations on Foursquare, but I’d be surprised if this type of crown was given for the Facebook check-in leader.  Facebook has also never included its mobile application and features within its advertising model, and I don’t see that changing.  The soon-to-be general location-based advertising capabilities with Foursquare may help keep it, and others, afloat.

Here’s my theory… Facebook is going to offer this more for user experience than monetization (at least at first).  Then, when they have us all sharing our location in our status updates, they are going to take the feature to the virtual space.  One thing I’ve noticed for a while with the geolocation movement has been the lack of virtual check-in applications.  Being able to check-in to websites and virtual destinations could prove as powerful as physical check-ins on applications like Foursquare and Gowalla – and perhaps even more powerful.  Think I have a decent startup on my hands?  Maybe so… although my guess is it won’t be too long before we’re seeing Facebook check-in buttons right next to the Like thumbs up all across the web in the very near future.

Tags: Facebook, Foursquare, Geolocation, Gowalla