The increasing connectivity to the internet via smart phones has given rise to another always-on technology: location-based services. Juniper Research’s newest report on mobile services estimates that mobile location-based services may reach revenues of $12.7 billion by 2014.

The most popular location-based services of the future will be timely, rewarding and useful. In a study by eMarketer, 88% of female internet users would be interested in targeted offers from brands they trust. Discounts and coupons are already popular on smart phones, and Foursquare has made their business out of offering “Mayors” special deals. Cellfire also offers on-the-spot coupons to customers. Location-based services are an opportunity to match brands and customers based on their proximity to points of sale.

Location-based services also serve other, more utilitarian needs. Yelp offers restaurant and store information for nearby stores, while Sit or Squat offers restroom reviews. Happy Hours will find the closest happy hour for after-work revelry, and Rocket Taxi will find a nearby taxi to take you home after.

Other location-based services, such as Whrrl and Twitter‘s location feature, offer the opportunity to provide locational context to sharing information such as photos and status updates. These services might create digital communities of those who regularly visit the same real-world locations.

The ubiquity and utility of always-on devices ensure that location-based services continue to grow in adoption. Although privacy concerns will be prominent, the experience that providers will offer and augmented reality apps such as Layar will provide an even more seamless experience hard to resist.

Article originally posted at Speaking of Social Media.