Last week I was asked by the Chicago Tribune to provide my thoughts on the Foursquare the social media channel / website that allows users to explore different locations and share them with friends. My comments and the full article here.
As I mentioned in the article – I believe that Foursquare along with its counterpart Gowalla, have an opportunity to cash in on social media more than any other social media site to date (ie. Facebook, Twitter, Linkedin). There are a few reasons for this, one of which being that Foursquare has blended social networking with gaming. Everyone loves a game and what better way to do it than to compete with your online friends (I’m not going to go into detail on how the gaming process works on Foursquare – read the article).
This gaming element is key – it’s something that plays a vital role on Facebook (example Farmville) – which is by far the number one application on Facebook, a virtual game that you can play with your friends. Facebook stumbles to find a way to monetize this gaming element and Foursquare is already on the threshold just waiting for users (and I stress the word users) to keep joining their site. Trust me on this one, when Foursquare has half as many users as Facebook – advertisers will start taking it seriously for marketing opportunities and that is when Foursquare will cash in. Users are key because Fortune 500 companies still believe in stats, visitors, unique visitors blah, blah, blah. Just to debunk how messed up this theory is, below is a chart listing the top social media sites based on traffic. Foursquare isn’t even on here! Do you see the truck before you get hit by it? Not likely.
I can envision a few inventive money-making ways to advertise on Foursquare (when the user base is at its peak) but I’m sure Dennis Crowley founder of Foursquare already has this in his back pocket. Great video and presentation
Good luck to Foursquare! I will be watching your career with great interest.