Will Foursquare still be popping its collar next year?

On August 18, Facebook announced its new location-based feature – Facebook Places. Places allows users to “check-in” to local businesses, public places, etc. Check-ins are then posted on one’s wall and included in one’s newsfeed. Mark Zuckerberg might have tried to sell the announcement as an extension of Web 2.0, but it’s clear that Facebook has now positioned itself to move into the local ad space.

In March Facebook rolled out the “Like” button under the guise that it was making the Internet a smaller place. They encouraged organizations, non-profits, businesses, and famous people to create a Facebook Page, so that they could be “liked” by fans/customers. Through the Places announcement, it has become evident that Facebook wants a piece of the multi-billion dollar local ad pie.

Many local businesses have already created Facebook Pages, and by connecting that page with the new Places feature, Facebook can directly show ROI to local advertisers – something the online local ad industry has struggled with for years. (Yelp – you should’ve take Google’s money and run when you had the chance.)

Part of the reason why the geotagging space has become popular recently is due to the hard work of startups like Foresquare and Gowalla. I’m an avid Foursquare user, and I think that it’s a fun way to explore a city’s cool local businesses. When I heard the Facebook Places announcement, my first thought was what does this mean for Foursquare? And if Places takes over the location-based space, does this mean that I’ll lose my prized ‘I’m on a boat’ badge and my ‘Mayorship’ of Hawaiian hotspot Hukilau?

I certainly hope not, for small companies drive innovation and create ideas that big business, which now includes Facebook, tries to steal. So let’s continue to support the little guys, because without innovation and improvement, Facebook would still be Friendster.