Foursquare Introduces In-Venue “Check-in” Ads On CPA Basis

According to an article in AdAge, Foursquare is now rolling out check-in ads on a cost-per-action basis. I was unable to find my own example on Foursquare, though I thought this program was already live.

Captain Morgan is apparently an early adopter of the program. The idea is simple: people go into a bar and check in, they then see a full-screen mobile ad for “Captain and cola, Captain and ginger or Captain mojito,” according to the article.

Advertisers are charged when consumers save or interact with the ad. It’s easy to imagine that these ads could be highly effective. It’s a form of in-store marketing — when people are at the point of sale.

Below is example check-in ad from Captain Morgan (via AdAge):

In an interesting decision, Foursquare reportedly won’t allow brand conquesting:

Foursquare chief revenue officer Steven Rosenblatt said in an earlier interview that 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.

These new ads come at a time when Foursquare is under pressure to generate revenue and prove its value again to the broader market. The company is seeking new and creative ways to use its data and location assets and has said it wants to be “the location layer for the internet” and is considering selling its data for retargeting purposes.

About The Author

Greg Sterling

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog, Screenwerk, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on Twitter or find him at Google+.