Foursquare Gets $41 Million Investment, Time to Gr
Dennis Crowley’s Foursquare, the location-based social media app, received great reviews when it was debuted in 2009. However, at this year’s South by Southwest, it did not receive nearly as much attention. Over the past couple of years, Foursquare’s main source of revenue, ads, has disappointed. As many companies have struggled to find advertising opportunities with the increased popularity of mobile devices, Foursquare is no different, bringing in only $2 million in revenue last year. The company got $41 million, mainly in the form of debt, leaving the question about the company’s true value unanswered.
Crowley must make a serious change to his approach to advertising if he wants to grow his company in the coming years. Foursquare currently allows only fifty companies to buy ad space. In addition, Foursquare only employs ten people to sell ad space on the app’s search function. Crowley should realize just how important advertising is to an Internet company and make the necessary adjustments.
Written by: Constantine Kostikas