Jessica Holman MKTG199SMM @JessicaHolman14 –twitter
Shown above is a link to an article about the app called Foursquare. Foursquare has multiple purposes; it is first and foremost a location app but it also serves as a social app, a discovery app and even a game. With so many cool features that many people are looking for in a mobile app you would think that Foursquare would have no problem making money but this is not necessarily the case.
Foursquare really isn’t making any money from the features I listed above. They make their money from their partner companies or the companies that pay Foursquare to be featured in the app. The problem with this arises with the discovery purpose of the app. Most people use the Foursquare app in order to find or “discover” new, fun restaurants but the problem is that the local restaurants that consumers are looking for don’t want to pay for their restaurant to be featured. Not only that, the popular chains that do pay to be featured on Foursquare isn’t what draws in new consumers. This in turn creates a problem with the growth of the company.
The video I posted above is titled “New Facebook App Screws Foursquare!” The video is basically a discussion of how the new location app for Facebook has really hurt Foursquare’s chances of really being successful. The fact that a big part of Foursquare is the social aspect is what makes the Facebook app such a big threat. When you go to “check in” on Facebook it is guaranteed that all of your Facebook friends (meaning the majority of people you talk to and want to be connected with) will see your check in. Also the fact that Facebook is already a trusted social media website and app makes it so consumers already trust the app as soon as it is launched, they don’t have to prove themselves like Foursquare does.