A social network that has managed to stay successful amongst the Facebook and Twitter giants is starting to take the spotlight with a new monetization strategy.
Foursquare, the network for location and checking in and out, is beginning to offer targeted ad spots for those looking to appeal to a specific audience. Many other social networks such as Facebook have been offering this for many years, but this is a first for Foursquare.
CEO Dennis Crowley made the announcement just a few weeks ago at the Pando Daily about the new ad spots, dubbed the discounts program. This leads businesses to wonder: How can I benefit from these ads, and are they any different than other targeted ads for social networks?
How Foursquare Targeted Ads Work
There are a few things small businesses need to keep in mind before getting started. First, the “targeted” aspect of targeted ads is local. Second, the targeted ads will be exclusively on mobile. And last but not least, the discounts program is still in its trial period.
Targeted ads will probably be available to the public in a few weeks, but Foursquare is still waiting to see how the program will work and how they will be able to manage and use the numbers collected. The beta version includes nearly 25 customers, such as Best Buy, so the success of these customers will determine where Foursquare goes with the project in the future.
What This Means for Businesses
For those who are unfamiliar with the site, Foursquare is a social network that thrives on check-ins and check-outs. Although restaurants are usually the businesses that benefit the most from Foursquare, other industries are able to leverage the network and find success.
A few Foursquare statistics for those who like numbers:
• Foursquare sees 2,000 check-ins per minute (social jumpstart)
• Foursquare has 20 million users and 2 billion check-ins (statspotting)
• Just six months ago, Foursquare only had 9.3 million users and 1 billion check-ins, so the network is growing at a fast pace (bizreport)
• 31 percent of mobile social media users use Foursquare (Pivot Conference)
Targeted ads will help companies reach a more relevant audience in the same way that it works for Facebook. In fact, Crowley stated that the company’s revenue model through 2015 will put Foursquare right in line with the likes of Twitter and Facebook. People will be able to see ads near their location; thus causing more in-the-moment purchases.
Will you try to use the Foursquare targeted ads? Let us know your thoughts in the comments below.
Amanda DiSilvestro is a graduate of Illinois State University. Although she graduated with an English Education degree, she found herself working as a full-time blogger at Highervisibility.com, nationally recognized as one of the best seo agencies in the country. Connect with HigherVisibility on Twitter to learn more.