Companies such as Groupon, Facebook and Yelp have already delved into the market of location-based promotions. Last year’s $600 million valuation of Foursquare has been met with some criticism, but CEO Dennis Crowley hopes that this new viable revenue source will help quell skepticism, as Foursqaure has announced plans to enter this market. When Foursquare launches the redesigned version of its app in July, the app will offer merchants an opportunity to buy special placements for promotions of personalized local offers. According to The Wall Street Journal, “all users will be able to see the specials, but must check into the venue to redeem them.”
When asked by the Journal how Foursquare will compete with services like Yelp, Crowley said that the search results are even more personalized. That is, rather than seeing results ranked by the community, Foursquare delivers locations based on the individuals past behavior. Additionally, results change depending on date and time.
The Wall Street Journal (subscription required)