With the emergence of location-based social networking, I’ve achieved the ultimate political goal: I am the mayor of 13 locations (via foursquare anyways). I know what you’re thinking. It’s a bit of a monopoly at Flippin’s Fantastic Desk, but rest assured that I earned that mayorship fair and square. After all, I’m highly decorated having earned 16 badges on my ventures including the coveted Douchebag, Crunked and I’m on a Boat badges.
Location-based social networking is a hot trend in social media, but with 50 new cities, millions of user-
generated content, various free cell phone applications, and high-profile sponsorships this seems to be more than a trend. Foursquare, probably the most widely spread and recognizable location-based social network, describes itself best as “helping users meet up with their friends on the go and discover exciting things to do in their communities.” Foursquare also just surpassed the 40 million “check-ins” mark, 1 million users mark and reportedly adds 15,000 users per day.
Recently, foursquare “mayors,” those who check-in most frequently at one location, have been subject to rewards and special offers. For example, during the month of June, mayors of Starbucks are invited to enjoy $1 off Frappucinos. Another way foursquare is leveraging the mayorship functionality is to host or gain access to special events. Foursquare “TweetUps,” or Twitter gatherings, seem to be gaining some momentum. Here’s a foursquare mayor exclusive TweetUp.
With all the hype surrounding location-based social networking, the next step of brand engagement (and foursquare profit) has begun. Some brands actively using foursquare are Zagat, Lucky, TLC, Bon Appétit, History Channel, Bravo and VH1. Having a good idea of what foursquare sponsorship price tags look like, companies aren’t seeing any ROI from logo placement and minimal recognition on their dedicated foursquare page. It’s a mere branding effort at this point.
The challenge for brands buying foursquare placement is they are not changing users’ habits. Users are “checking in” to someplace when they are already at a location. Badges received are typically stumbled upon, not sought out. Consumers are not changing habits to engage with brands. There’s a slim chance anyone will purposely travel to the History Channel’s “to-do” list items in order to win History Channel prizes (read as swag bag) or unlock superficial badges that only other foursquare users can see. Zagat’s foursquare page offers no incentive to follow them apart from one-sided tips and ongoing offers in exchange for the coveted digital badge.
Consumers like to feel as though they are receiving exclusivity and privilege through social media, which sponsorships on foursquare could easily create. Brands could offer incentives for additional locations nearby or partner with multiple companies to create a brand network. For example, if a user checks into a 
movie theater, an offer for an ice cream cone or free cocktail with your ticket stub could appear. Another example is if someone unlocks the Zagat’s badge or completes 10 of their to-do’s, the user receives a free Zagat’s guide to their city. Or Bon Appétit could partner with restaurants to create “Bon Appétit Menus” only available to those who check-in. The consumer needs a tangible reward for using the foursquare service and a reason for users to keep seeking out offers and engaging with a brand.
While branding opportunities for foursquare are still in its infancy, users should look forward to growth and additional perks. In the meantime, I will enjoy my 16 badges and 12 mayorships and be silently bitter that no one stays mayor for long … not even at Flippin’s Fantastic Desk.
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