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According to a new report from web analytics firm Compete, 1 in 3 smartphone users use a location based service at least once a month. Weather and navigation apps are currently the most popular location based services, followed by apps that provide store locations, movie showtimes, and local news. Interestingly, there also seem to be a number of highly underserved markets. According to Compete's research, users also want to be able to receive local alerts about topics like traffic jams and gas sales.

One of the web trends we're noticing this year is more location-based mobile phone applications - i.e. apps that know where you and/or your friends are and utilize that data in some way. Some of this activity was fueled by Google's entrance into the market as a serious player, in February when Google Latitude launched. Latitude allows you to share location-based information with friends. We've also covered a number of innovative location-based startups, including Bliin, Toai, Parallel Kingdom, Radar, Visible Past (our coverage) and Wikitude (our coverage).

Visible Past is a location-aware learning environment being developed at Purdue University. It is based around the idea that data can be organized using space and time attributes. The team behind the project believes that Visible Past can be used as a learning tool in schools and museums.

Practically speaking, Visible Past is a mix of virtual reality, location-based data and a wiki approach. So users of the system not only receive information, but can contribute to it too. Features include social networking and content rating/review.

One of the big trends on the web is more and more location aware / sensitive web applications. Increasingly powerful mobile devices are enabling this. In the latest episode of RWW Live, today at 3.30pm PST, we'll talk about how the Web is evolving to include more location aware applications and what barriers are still in the way. We'll also talk about privacy and other user concerns and what is being done to address them. We have special guests from Yahoo! Fire Eagle, Four Square and Outside.in on the show today.

An internet worm that uses social engineering to direct you to a malicious web page is nothing new - that's just everyday malware. But there is something different about the latest variant of the Waledac worm: it uses geolocation services to target its intended victims. Initially, the Waledac worm sends a spam email message claiming there has been a dirty bomb explosion in "your city." If the victim clicks through on the provided link, the worm then uses a geo-IP lookup service to customize the story appearing on the malicious site which is designed to look like that of news agency Reuters.

Yahoo has just released a new application which brings their location-aware platform Fire Eagle to Facebook's social network. The new app called "Friends on Fire" lets you easily share your current location with a set of trusted friends. Fire Eagle users can also share short, Twitter-like posts with each other. These are quick updates and tips tied to your location and displayed on a map within Facebook. In addition, the Fire Eagle team has also introduced a Firefox extension that lets you update your location with just one click.

Just in time for SXSW, Dennis Crowley, one of the original developers of Dodgeball, has released a new location-aware social app (iTunes link) for the iPhone: Foursquare. At its core, Foursquare is a location-based social network, but at the same time, it is also a nightlife game where users get extra points for being the first to visit a new place, going out every night of the week, and for adding new information about clubs and restaurants.

Google's new geo-aware mobile application Latitude which lets you share your location with friends may have received all the hype, but that doesn't necessarily mean it's the best or the most innovative app out there. We've recently come across some smaller, lesser-known services that could give Google a run for their money - that is, if anyone knew they existed.