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 to Mashable 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.

Image: Flickr,John Fischer
Source : Mashable

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