Geo-social is the latest hit in digital marketing.  After years of corporations leaving the “fad” of social media work to interns, corporations now embrace new mobile technologies to create loyal customers.

Corporate America sees Loopt, a foursquare competitor, as an avenue for growth with 3 million registered users.  Loopt Star, an iPhone only app, has partnered with Gap to give a 25% discount to users that check in twice at a local store.  Universal Music Group is offering a deal for having several people check in to receive 5 free MP3s.  But do people even respond to this?

Pepsi is trying the free music rewards too, with their own exclusively branded app — even though they are partnered with foursquare.  Many have criticized Pepsi, arguing that only tweens would use their app, and why develop their own geo-social app when they are partnered with the most popular geo-social network, foursquare?

Foursquare passed the 1.7 million user mark on June 22, 2010.  It’s growing at a rapid pace, over 100,000 users in a little over a week.  Although Loopt has 3 million users, I personally have no friends using it.  I do have 30+ already on Foursquare.

Brands with local retail outlets can use foursquare to create more repeat buyers.  Starbucks created an incentive for foursquare “mayors” to get discounts.  To reach “mayor” status, one needs to check in very often at a particular location.  The unseen problem with this is that employees are playing this game too – leaving customers’ efforts almost useless.  However, customers are still checking in and sharing their whereabouts with friends.

Based on growth, there is no doubt that foursquare is going to dominate the geo-social market.  Corporate America needs to partner up with this baby giant and help them work out growing pains like the Starbucks employee problem.  Maybe they can create an extra badge or deal for employees just to keep everyone happy.  Time will tell, but I’m sure both corporations and foursquare will mutually benefit from each other.

www.foursquare.com