Online reviews aggregator and local business discovery engine Foursquare has introduced a new way of promoting businesses looking to reach out to potential customers among site users: post-check-in mobile ads.
In a move that the company hopes will drive increased revenues, Foursquare has begun to roll out ads to users immediately after they check in at certain locations. The ads appear with promoted listings within the Foursquare app’s Explore tab. On a Cost-per-Action basis (‘action’ being when someone clicks on the ad), business owners can now pay to advertise and target Foursquare users based on relevant check-ins. They’ll only be charged when the users click the ad or save it (or E-mail it) for future use.
(Check out: “Foursquare for Business: Six Sweet Tips for Biz Owners”)
One of the first brands to sign up for the new mobile advertising product is Diageo-owned rum and spirits company Captain Morgan. According to Ad Age, users who check in at certain bars, restaurants, and nightspots will see an add suggesting they order Captain Morgan’s “Captain and cola,” “Captain and ginger,” or “Captain mojito.” Kids toy store Toys R Us is also already on board, using the Foursquare post-check-in ads to target users who check in at kid-friendly locations like parks, playgrounds, public swimming pools, and daycare centers.
“Post-check-in ads are part of Foursquare’s larger initiative to use its trove of check-in and location data to develop more contextualized ad units both within Foursquare and on other platforms,” wrote John McDermott of Ad Age. “However, Foursquare will not allow brands to use post check-in ads for ‘conquesting’: allowing one brand to advertise to a user who checks in at a competitor’s location. If a user checks in at a restaurant, for instance, a rival eatery around the corner would not be able to serve that user a post check-in ad for half off its Pizza Shooters, Shrimp Poppers and Extreme Fajitas Appetizer Ensemble.”
The new effort by Foursquare comes a year after it introduced Promoted Updates, which allows businesses to send photos, texts, and promotional information to Foursquare users based on their check-in location.