Next time you check in to a location on Foursquare, you may see an ad pop up right after.
AdAge reports that brands like Toys 'R' Us and Captain Morgan have started placing ads that appear after users check in to locations on Foursquare. Users who check in at a bar may see a Captain Morgan ad encouraging them to order specific drinks, while users who check in at a park may be shown a Toys 'R' Us coupon.
A Foursquare rep confirmed that the ads started rolling out over the last several weeks. According to the rep, Foursquare charges on a cost-per-action basis rather than a cost-per-click basis, meaning Foursquare only makes money if users click the ad to get more information or check in to an advertiser's physical location (such as a Toys 'R' Us store) within a certain period of time.
The post check-in ad product is Foursquare's latest attempt to boost revenue. Multiple reports claimed that Foursquare was on pace to generate just $2 million in revenue last year. Earlier this year, Foursquare raised $41 million to prove its business model can work.
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