Geo-based Loyalty App from Pepsi

Pepsi is rolling out a new application that contains a first. Built in loyalty tied to an app. This new app is called Pepsi Loot. The app lets customers know when they are near “pop spots,” or a place that sells its soft drink.

When someone stops in and makes a purchase Pepsi rewards the person with points. These points can be redeemed for a free music download (New York Times). This app focuses on restaurants; about 200,000, including chains like Taco Bell, are participating.

The app shows the participating Pepsi-serving restaurants on a map, includes menus for them, and allows consumers to sign in to those locations (that sign-in is done separately from a Foursquare check-in). Once they do, they accumulate points toward song downloads. The restaurants can layer in offers, too — Shakey’s is giving $3 off a large pizza for people who show the Pepsi Loot app, for instance.

Also in this space Macy’s, too, has announced that it will use an app from a company called Shopkick to send customers offers when they are in or near the department store.

With the addition of Facebook’s location aware updates and this integration with Pepsi and foursquare things are getting more interesting in the geo-location space.

Expect to see by the end of this year and early next year major brands jumping in and finding ways to monetize the fact that almost everybody on the planet is carrying around a location announcing device. Now it’s up to them to get me to actually want to interact, engage and check in.