Foursquare expands ad products to Mexico and Brazil
What: Foursquare will launch its’ advertising service within their applications Foursquare and Swarm in Mexico and Brazil.
Why it matters: Advertisers will be able to create campaigns in Foursquare and Swarm at cost that will depend on the strategy companies develop with IMS Internet Media Services (IMS), Fourthsquare’s exclusive advertising sales partner in the region . Portada talked to Ignacio Vidaguren, COO & Partner IMS Internet Media Services, on this expansion.
To continue expanding beyond U.S. borders, Foursquare will launch its’ advertising service within their applications (Foursquare and Swarm) in Mexico and Latin America to establish a more profitable presence in the region and help advertisers reach consumers with campaigns using Foursquare’s ad products through the social net mobile applications.
This service has been operating in the US for two years and has already reached countries like UK and Turkey.
The launching coincides precisely with a report that talks about the slump the social network has been experiencing, since according to VentureBeat the interest in Fourthsquare relaunching and and its check-in companion app Swarm dropped.
With this platform, advertisers will be able to create campaigns in Foursquare and Swarm, where they are charge on a Cost-Per-Action basis, or when users either interact with ads, or check into a specific venues within 72 hours after seeing related ads.The cost will depend on the strategy that companies develop along with IMS Internet Media Services (IMS), Fourthsquare’s exclusive advertising sales partner in the region since March 2014.
The introduction of Foursquare Ads in Latin America comes as the region is experiencing exponential year-over-year Internet growth and among the highest mobile penetration and social media engagement rates in the world
The introduction of Foursquare Ads in Latin America comes as the region is experiencing exponential year-over-year Internet growth and among the highest mobile penetration and social media engagement rates in the world: According to comScore, Latin American internet users spend ten hours a month – twice as much as the average in the rest of the world – on social media platforms.
Portada: Can you please explain how a promoted place ad looks like on Foursquare?
Ignacio Vidaguren: "Foursquare uses location data to target your business' ideal customers, like people in the area searching for the products and services your business offers, or people who have visited similar businesses. Promoted Places brings new customers right to you by featuring your business prominently as the first listing people see. For example, if a user searches for "coffee" on Foursquare, a Promoted Place would be featured at the top of the list, making sure potential customers visit you, not your competition. The only visible difference between your listing and your competitors' listings is a yellow lightning bolt and the word "Promoted" at the bottom of your listing. To further see how this works, please go here."
Portada: How is it sold, on a CPM basis or another pricing metrics? how does a typical CPM for this product look like?
Ignacio Vidaguren: "The Promoted Places feature is sold on a cost-per-action basis, based on two actions: ad clicks and store visits within 72 hours after seeing the ad. Foursquare's technology has the capability to know if the user visited the store even if the user does not check in. In the case where the user both clicks on the ad and visits the store, Foursquare will only charge for one of these actions. Both actions, however, will be reported.The Place Based Ads feature is sold on a cost-per-click basis.The Foursquare Audience Network, which is a feature that lets businesses reach Foursquare audiences based on their real world activity, with the reach and scale of display, mobile, video, and social channels (like FBX), is sold on a cost-per-impression basis."
Portada: Are there integrations between Foursquare and Facebook?
Ignacio Vidaguren: "Yes, the Foursquare Audience Network can be run on Facebook Exchange, a feature that helps business reach the people who have expressed interest in their products or services, based on their only behavior. Foursquare users can also share their activity – Swarm check-ins, Foursquare tips, etc… – on Facebook as well as other social media networks."
Portada: How many users does Foursquare have in Latin America?
Ignacio Vidaguren: "Foursquare boasts a community of over 55 million users, with over half of its community outside of the United States. Foursquare has seen unprecedented growth on its platform in Latin America, especially in Brazil and Mexico, which led to its expansion into the region. Mexico and Brazil are also the third and fourth countries, respectively, in which Foursquare has started offering its advertising products."
Portada: Will you be selling to some accounts pan-regionally out of Miami or other major Latam marketing centers?
Ignacio Vidaguren: "We will be selling to accounts pan-regionally within Latin America and the Caribbean."
Portada: Who at IMS will be in charge of the Foursquare sales?
Ignacio Vidaguren: "IMS has built dedicated teams in Brazil, Mexico and Miami to take charge of Foursquare sales. These regional advertising teams have already begun servicing global brands like Palacio de Hierro, Nike, and Pepsi in Mexico and Citroën, VISA, Smirnoff, and Johnnie Walker in Brazil."