Foursquare has announced today the pilot launch of its “promoted updates” feature, which allows companies to put out messages about deals or available products to Foursquare users. The companies first money-making feature has two different forms, a promoted update and a promoted special. The promoted update allows a company to issue a message about a new product and the promoted special allows a company to put out a message about discounts, according to Tech Crunch. Foursquare’s chief revenue officer, Steven Rosenblatt, explained that the promoted updates feature use technology to target users specifically based on their locations and interests.
Rosenblatt added, “What we’re really excited about is that you have to be near a business to get an update. No matter how much someone pitches us, it has to be relevant, based on proximity and based on intent. Those are critical.” Updates are only available to about 20 companies right now including Gap, Best Buy, Hilton and Walgreens. These companies are paying Foursquare based on a “cost per action” system.