Foursquare has long been the leader in location based platforms and to generate revenue, CEO Dennis Crowley the company will monetize by offering targeted deals to millions of businesses. How targeted deals will work is very simple: Merchants can target discounts to specific user groups. For example, repeat customers or even new customers.
Users will discover these discounts under the “Explore” tab. The monetization plan is very similar to Google Adwords says Crowley, “but targeted just at local, and exclusively on mobile.”
Now is the ideal time for Foursquare to start monetizing with Millions of active users.
Foursquare’s projected revenue-per-user is said to be in the middle of Twitter and Facebook’s. To kick things off, they’re currently doing a trial run with 25 different customers such as Old Navy and Best Buy. Testing is key and will determine how viable targeted deals can be for the location based services provider.
Dennis also talked on finding how many users Foursquare needs to be successful financially. Since Foursquare’s target audience is mobile based, they don’t need anywhere near Twitter and Facebook’s massive numbers in order to succeed.
This will be Foursquare’s first venture into monetizing the platform and will help move it towards becoming a profitable business.