Foursquare is one of a host of companies that combine a social network business model with location-based technology. Foursquare’s niche: a mobile social application that allows you to check in to a restaurant or other location, and automatically lets friends on Facebook and other programs learn where you are. If you’re in a new town, the app transmits your location and sends you information about popular spots close by, with reviews from other Foursquare users. After starting up Foursquare on a smartphone, you’ll see a list of local bars and restaurants based on your cell phone’s GPS position.
Foursquare was founded by Dennis Crowley and Naveen
Selvadurai. They began building the first version of the application in 2008. Foursquare
had over 33 million members worldwide and have checked in over 3.5 billion
times.
What revenue model does Foursquare use?
Foursquare shares many similarities with other social networks like Facebook and Twitter. Foursquare is monetizing their user bases with an advertising-based, social retail-based revenue model.
In June 2011, Foursquare partnered with American Express to offer discounts to card-holders when they check in on their cell phone to certain shops and restaurants.
In July 2012, Foursquare announced the next steps in the monetization of its business model: Local Updates and Promoted Updates (now called Foursquare Ads).
In April 2013, Foursquare announced it was working on a new ad product that will use its location and behavioral data to retarget ads to users on third-party Web sites. Foursquare claims it will not target users on an individual basis, but rather place users into various consumer segments, such as “luxury” or “business traveler,” allowing advertisers to serve those users display and video ads based on those segments.
What other revenue models might be appropriate?
What revenue model does Foursquare use?
Foursquare shares many similarities with other social networks like Facebook and Twitter. Foursquare is monetizing their user bases with an advertising-based, social retail-based revenue model.
In June 2011, Foursquare partnered with American Express to offer discounts to card-holders when they check in on their cell phone to certain shops and restaurants.
In July 2012, Foursquare announced the next steps in the monetization of its business model: Local Updates and Promoted Updates (now called Foursquare Ads).
In April 2013, Foursquare announced it was working on a new ad product that will use its location and behavioral data to retarget ads to users on third-party Web sites. Foursquare claims it will not target users on an individual basis, but rather place users into various consumer segments, such as “luxury” or “business traveler,” allowing advertisers to serve those users display and video ads based on those segments.
What other revenue models might be appropriate?
The five primary revenue models used by e-commerce
firms are:
- Advertising revenue model
- Subscription revenue model
- Transaction fee revenue model
- Sale revenue model
- Affiliate revenue model
· Advertising revenue model: this model derives its revenue by the mode
of paid advertisements on the website. Advertisements
methods like Google Add sense is mostly used in this
model. The website owners like to attract more visitors to their website which would attract more people to advertise on their
website.
· Subscription revenue model: The firms that use this model make users
to pay for the services they offer to them. This paid subscription can be either monthly or yearly.
·
Transaction fee revenue model: Mostly this
service is used by payment portals. They charge fees for
every transaction done through them.
·
Sale revenue model: In this model company derives
profit by direct selling products or providing services.
· Affiliate revenue model: The site using this
model refers to affiliated website. They generate
revenue by referring user to the affiliated website
EmoticonEmoticon