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Foursquare Rolling Out Promoted Updates to Generate Targeted Ad Revenue

Foursquare, the location based mobile app that gives updates about what’s going on at your favorite places near your current location or what your friends are up to in the vicinity based on preferences set, is trying to monetize their location driven service.

Foursquare is rolling out a new update called Promoted Updates. The name suggestively says what it is for. The app is being paid by businesses that would benefit from letting users know the deals and offers that they have at their stores around the user’s current location. Foursquare is being used by more than 20 million people around the globe. Last month there was a refurbishment of the app, when it launched additional features such as browse locations by category or do a specific search for services of things they want. So it is now possible to search for pizza or hot chocolate on the app based on where you are.

The apps Explore tab is where Promoted Updates will reside and users can use it to explore more about what’s happening around them, find deals from the most unheard of and unlikely places. Business would be enjoying this service now that can get a share of the apps’ power through increased targeting.

The app users are growing in number everyday. However businesses would have to put up with a ‘Promoted’ icon on the result, which they should not complain at the end of the day. Steven Rosenblatt, Foursquare’s chief revenue officer, recently released a statement in which he emphasized the point that businesses should enjoy the fact that they can now reach out to customers with an offer when they are near to them and most likely is in a purchasing position.

So when the next time a user searches for a laptop he could be targeted with an ad from a store nearby for a weekend sales offer. However, the ads will be shown to the user only when he is close by enough.

[Source]