Foursquare’s CEO Dennis Crowley announced that the company will try to make money outside of its app via check-in data, according to an article from AdAge. The company’s strategy involves a new ad product that uses the app’s location and psychographic data to contextualize ads on other platforms, giving advertisers the ability to use the data to target ads that are bought through ad exchanges or networks even when the individual isn’t using Foursquare.
From a revenue standpoint it makes a lot of sense for Foursquare to go this route but it’s a little surprising that it hasn’t happened sooner. Already Facebook and Twitter offer similar location-targeting ads and smartphones can be geo-located by apps and ads without Foursquare data. So the question is whether or not agencies and other marketers consider this data to be valuable enough to pay for it. That’s the real make or break for Foursquare.
Do you think that the ad world will respond well to this strategy?