According to media reports the social networking site, Foursquare, has passed two million users. Many of these users are actively engaged with Foursquare by checking-in frequently as they travel around. Should your business try to capture their attention by advertising “local specials” on Foursquare? It all depends on the business.
If you are selling ice cream or smoothies on a hot day, Foursquare may deliver a very high ROI for an advertising campaign. On the other hand, if you are a doctor, an accountant, or any business that does not rely on impulse buying – Foursquare advertising is less likely to deliver great results.
The other way to utilize Foursquare advertising is to undercut a competitors price with a local special. Foursquare ads are viewed on mobile devices within your immediate local area (assuming Foursquare delivers the ads properly based on geo-targeting). Unlike some forms of CPM and CPC advertising that are hard to gauge results immediately, Foursquare advertising should deliver immediate data to evaluate. If a company runs a campaign on Foursquare and lowers a price for one of their goods or services via the Foursquare special, the company will know instantly if they have captured any additional local foot traffic. In some ways the abiulity to measure results is even better than companies that sell products online, because those metrics have to rely on cookies or user identication to be wholly accurate.
What not to do with Foursquare advertising was demonstrated recently with Starbucks. The campaign that Starbucks ran rewarded the “mayors” of each of their stores, but did not provide an incentive to visit the store. Most people do not have the time or energy to try and win the war to be the mayor of the Starbucks they frequent. If anything, the Starbucks Foursquare special pestered loyal customers.
So the lesson is: Test Foursquare, track the results, see if it is a perfect fit for your business.