Aussie start-up takes on Foursquare,Gowalla (..and Google?)

Aussie start-up Dream Walk Mobile just launched their Dream Walk App. Essentially this is a “treasure hunt” style app, where users fire it up, and can see offers from local retail stores in their vicinity.  The principle is fairly simple: As an advertiser, you offer instant prizes, stamps that need collecting, or clues, which the user has to solve that leads to the ultimate prize.

To make it all work, they have a few, but very important rules that advertisers must obey:

• Prizes must be giveaways, not discounts or other offers
• Winner must not perform any task other than provide basic identification
• Products must be “real”, i.e. no promotional giveaways (like pens with company name etc)
• Giveaways must not be freely available elsewhere

The rules are probably what will make this work for Dream Walk.  Gowalla and Foursquare offer a lot more in terms of network value and integration with social networks.  Dream Walk Mobile is simple: Use it and you will get free stuff.  Dream Walk also has the advantage that the value of using their app is not tied to the number for people or friends using it.

You can of course argue how long it would take Google to offer the same if they decided to. A week?  But Google does not at least currently have this model, and allows advertising on maps based on bidding.  It could very well be that Dream Walk Mobile’s model is what will have them be somewhat unique, at least for a while.

Of course, they still need to solve the issue of getting enough users, and that those users actually fire up the app while walking around the cities. In this regards, they have had a heavy focus towards advertisers, and using the service is quite simple.  I would certainly jump at the chance for a free coffe – but doubt I see the day when I see a free car get offered. Then again, if they get an advertiser to jump on that, solving how to get users and having them have the app running would not be a problem.  The concept is tried and tested, and scavenger hunts like Norway’s Radio 1 “The Hunted” has been proven to successfully drive listeners, users and traffic.  Stay tuned.

What do you think? Will this type of model prevail? Or will it be marginalized? Please add your comments.