Foursquare has been testing promoted listings with a select few businesses, and today has made ads available to all small businesses.
This is a big step forward for the location check-in service who has frequently been criticized over its lack of revenue after four years.
Its main product, Promoted Listings, allow businesses to appear in front of potential users in their area.
Similar to pay-per-click, businesses are only charged when a user clicks on a listing, and businesses can also promote special offers for example.
Pricing will differ based upon the nature of each business. Lower margin businesses such as coffee shops will typically bid between $1 and $3 to lure in a customer, whereas spas, high-end retailers and expensive restaurants may bid up to $7 on an individual Foursquare user, chief revenue officer Steven Rosenblatt said.
Foursquare has around 1.5 million registered businesses, and even those internationally will be able to create ads starting today.
According to Rosenblatt, 1000 businesses are currently utilizing its ad products, giving the service huge revenue potential as more businesses get involved.
In September, Foursquare hit 40 million users, and after its $41 million round of funding in April, is valued at over $700 million.