Location-based social media platforms that allow users to find deals and “check in” at local hot spots are all the rage these days. Industry leader Foursquare reported last week that it’s nearing its first “one-million check-ins day” and competitors such as MyTown and Gowalla are quickly gaining ground. While these apps are currently enjoying superb growth and buzz, I believe the future of location-based services can actually be found in a key feature of a newly released iPhone app.

Meet DeHood. Like its location-based relatives, DeHood encourages users to check in at places around town and offers rewards for reaching certain milestones. Where DeHood sets itself apart from the rest of the pack, however, is with one valuable feature: “reporting news.” This feature allows users to share hyper-local information—you can even include photos—that is served up to other users based on their proximity to the location where the information originated (think Twitter’s “Nearby Tweets” feature, but better organized and easier to consume).

This is a major step forward for location-based services that are constantly under fire for lacking value and substance. Sure you can use Foursquare to share where you’re heading for dinner, but as many social media critics will reply, “Who really cares?”. Now users are able to go beyond checking in at brick-and-mortar storefronts to share diverse and impactful information with others nearby. I predict Foursquare and its close competitors will integrate this feature into their products, or be lost in the dust to those that do.

So what does the reporting news feature mean for marketers and local businesses? As an example, here’s a day in the life of Pete, a local social media-savvy baker:

• At 8 a.m., Pete puts the finishing touches on a fresh batch of sticky buns. He snaps a quick photo and posts that they are ready for pickup. Julie and her mom happen to be in the neighborhood running errands two blocks away. They’ve never heard of Pete’s bakery, but see his news alert and stop by for a morning treat.
• Around noon a construction crew arrives in front of Pete’s bakery to do some street repair. The construction blocks the main street in front of Pete’s business, so he sends a news update to alert people in the neighborhood to avoid the traffic and take a side street. Sharing news like that is certainly good karma for Pete and increases engagement and goodwill with other users.
• An hour before the bakery closes, Pete posts that he has a surplus of dinner rolls and is selling them at 75% off. As his neighbors return from work, they stop by Pete’s bakery to take advantage of the great deal. Way to go, Pete!

How else do you see the reporting news feature revolutionizing location-based services? And now that there’s a location-based service that lets you report news to your neighborhood, will you be checking in?