Foursquare Is Testing Paid Promotions for Small Businesses
Taking another step toward monetization, Foursquare is testing paid promotions with some New York City-based merchants, according to Advertising Age. Until now, the location-driven social network has made paid promotions available only to national brands. This marks the first time Foursquare is generating revenue from small businesses.
The small-business promotions enable these local merchants to target users based on their locations and check-ins. They will appear in a user’s recommendations or in the “Explore nearby” section of the app.
Steven Rosenblatt, Foursquare’s CRO, distanced these promotions from daily deals, clarifying that this is different. “The vast majority of businesses, the daily deal was not beneficial to them,” he says.
Merchants who want to participate will be able to turn these promotions on and off. They will be charged on a cost-per-action (i.e., tap) basis. Advertising Age notes that Foursquare typically charges $0.50 to $3 per action but that this may be different for small businesses.
A recent survey from Social Media Examiner hints at a tough road ahead for Foursquare in terms of ramping up the adoption of these types of promotions. The survey found that 65 percent of marketers say they don’t plan on using geo-location services like Foursquare in the near future. It also found that just 27 percent of marketers are interested in learning more about platforms like Foursquare.
