Local Matters announced that it has acquired Point2’s Facebook Neighborhoods application:
Point2 launched Neighborhoods for Facebook in July 2007. To date, 800,000 Facebook users have installed the application. Facebook boasts over 70 million active users and is the 6th most trafficked website in the world today, according to comScore.
There’s an ongoing relationship to maintain the application. Local Matters’ CEO Perry Evans also riffs on the acquisition and the value and importance of neighborhoods in a blog post:
The context of this post was, in part, to help explain the thinking behind an important development partnership that we just announced at Local Matters. We’ve taken over the ownership and development of the Facebook Neighborhoods application, which was developed by Point2 Technologies (a leading real estate technology company) to syndicate local home listings to FB users.
It’s a great partnership that allows us to expand and stretch this new space in local media. We share the belief that by improving the consumer value of Facebook Neighborhoods, the opportunity for real estate listings naturally expands. Makes sense. What’s also exciting, is that this neighborhood engine provides a foundation for international neighborhoods, which is central to the way we think of the business.

Neighborhoods could become a kind of uber-application on Facebook that might include content from numerous other providers (should it evolve that way). It could also be a kind of Fire-Eagle-like infrastructure for location on Facebook generally. But that probably won’t happen given that it’s just one application among many.
Beyond that, Facebook is a network that has location in its legacy but doesn’t really “get” location. Location for Facebook will become more important and self-evident as a strategic asset as the site moves further into mobile.
Other neighborhood database providers include Urban Mapping, Zillow, Maponics. All these are not identical and have varying degrees of depth and nuance. Neighborhood is actually a dynamic and changing boundary and perceived differently by different individuals and “constituencies.”
I spoke before about the panel at Where wherein there was a discussion of the inverse relationship between the granularity of focus on the consumer side and the available ad inventory. Ads don’t really exist for the neighborhood level — advertisers and publishers aren’t that sophisticated yet. There’s lots and lots to discuss about this and the future where location targeting is concerned. But, quickly, again I come back to the idea of demographic targeting once a neighborhood can be accurately targeted.
Imagine brands (e.g., BMW), which have a buyer/prospect profile and want to target users that fit that profile. Accurate local targeting by neighborhood and zip would allow for that on a national basis. But where those ads appear online is part of the challenge ahead.
Direct marketing via snail mail is something like a $190 billion market in the US according to third party estimates. Once demo/local targeting can be cracked, along the lines above, online some of those dollars will migrate online.
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Related: Local Matters is going to take another crack at an IPO.