The company is doing a trial with about 25 paying customers, including Best Buy and Old Navy, to see if users respond to sponsored results. “The point now is not for us to be generating a ton of revenue,” he said. “It’s to learn how these tools are supposed to work and to learn how the users are responding to the experiment of these promotions.”
Ultimately, he said, Foursquare’s proposed monetization scheme looks a lot like Google AdWords, but “targeted just at local, and exclusively on mobile.” The goal is to be able to let merchants target a specific 20-percent discount promotion to a specific user set, such as only the most loyal customers.
Foursquare Offers Personalized Coupons