June 08, 2012, 10:17 AM —
Just over three years ago, Dennis Crowley launched Foursquare at SXSW Interactive. The app’s name and icon came from the playground game four square, and the elevator pitch was similar: you “check in” to businesses, restaurants, and other venues with your phone, share that check-in with friends, and beat other Foursquare users to becoming the “mayor” of a space and garnering competitive points, shown on a leaderboad. Which can be fun for a while, until you and your Foursquare-using friends become naturally more relaxed, less competitive, and start asking questions about what the app is really for.
Foursquare intends to answer them with a big new redesign, one that’s based on “seeing how our 20-million strong community has used the app.” The new Foursquare is geared toward exploring places, browsing reviews, recording experiences, and other uses of the app that don’t involve checking in, inviting spontaneous gatherings or envy, or maintaining fiefdoms. As Crowley implied to the New York Times, and more directly related to TechCrunch, the path to selling ads and services against reviews and user recommendations is a lot smoother than that of eventually charging users for a game they feel they can leave and not really sweat too much.
I can’t find it now, but someone let loose with a sage big of Twitter snark recently regarding startups. To paraphrase: when a startup claims that they’re looking into “new and creative revenue models,” it’s almost inevitable they’ll be selling old-fashioned advertising in three years’ time. Foursquare certainly has an invested audience with some means of disposable income, so selling ads won’t be too hard. It’s just too bad that it couldn’t have jumped on two really interesting models dreamed up by small firms riding on its API.