If you’re not already on a holiday break, you’re probably headed for one soon. Heading home for the holidays often means catching up with old friends and visiting old haunts – and if you’re like me, you’ll be using a check-in service such as FourSquare to keep track of places you visit, find out where your friends are, unlock on-the-spot deals, and hopefully earn a “badge” or two along the way.

Things have just gotten interesting in the location-based social media game. Foursquare has been the dominating service since its inception in 2009, but Facebook just made a move for a serious play at competing in the space with its purchase and integration of Foursquare competitor Gowalla.

So what does this mean for us as consumers and marketers? Imagine this: you’re meeting with your high school friend at the restaurant you spent many late nights in high school, and your phone alerts you that there’s a new craft beer bar nearby. And bonus – they’re offering a buy 1 get 1 free deal for first-time customers (which they can track thanks to location-based check-in services)! So you suggest it to your friend, and it turns out that he’s a regular there. You all walk over to the bar for a drink, and on checking in find out that your buddy is the Mayor of the bar, which earns him a half-price pitcher. Score! Plus, two of your other highschool friends saw your check-in on Facebook and stopped by the bar to see you. Thanks to the check-in service, you got a few half-price beverages, discovered a new favorite hangout whenever you visit home, and saw some friends who may not have already known you’re in town. On the bar’s side of things, they earned a new fan and a few extra customers that night – all for the price of a couple beers.

Location-based marketing is going to be a major player in 2012. How can it benefit your business?