- After popularizing the mobile "check-in", Foursquare has been on a continuing quest to prove its worth and generate revenue.
- The locations-based app and network is now opening its promoted listings to all businesses, small or large, around the world.
- Businesses will be charged on a "cost per action" basis using a scale determined by the level of profit margin. For example, a coffee shop typically will bid between $1 and $3 per customer while a high-end retailer may bid $7.
As Foursquare continues to struggle to pull in revenue from its model, any new stream is a positive. The platform will face some hurdles with small business, which are historically reluctant to invest in digital ads. Overcoming negative experiences with other local discovery programs like Groupon and Yelp have soured small businesses as well, but if Foursquare can find a few champion businesses to use as examples, this could be an untapped opportunity.