Editor's note: This post is being preserved for reference and posterity, but the data, branding, and statistics it contains may have changed since publication. Happy reading!
I was wrong about Foursquare.
While five of my 2013 local search prognostications came to fruition, my sixth prediction—that Foursquare would be bought—doesn't look like it will (unless Apple has silently acquired Foursquare in the last couple of days).
In fact, Foursquare has been turning away from an acquisition path, setting off on a fundraising spree in 2013. While this quest for cash has struck some analysts as a desperate tactic, PR from the company indicates that it remains focused on growing its userbase and its revenues for the foreseeable future. It's one of the few companies in tech to successfully address both sides of the merchant and consumer marketplace, and as a result, might even have a chance at an IPO.
As the company matures, we hear less and less about mayorships, badges, and social gamification—perhaps a tacit admission that checkins are indeed dying as the motivational factor underlying usage of Foursquare.
Foursquare: the data aggregator
Instead, the company is pivoting into a self-described position as "the location layer for the Internet."
Google, Bing, Nokia, and other mapping companies have built their own much broader location layers to varying degrees of success, but it's the human activity associated with location data that makes Foursquare unique. Its growing database of keyword-rich tips and comments and widening network of social interactions even make predictive recommendations possible.
But I'm considerably less excited about these consumer-facing recommendations than I am about Foursquare's data play. If "location layer for the internet" is not a synonym for "data aggregator," I'm not sure what would be.
In the last several months, Foursquare has been prompting its users to provide business details about the places they check-in at, like whether a business has wi-fi, its relative price range, delivery and payment options, and more. It's also accumulating one of the biggest photo libraries in all of local search. For companies that have not yet built their own services like StreetView and Mapmaker, Foursquare "ground truth" position is enviable.
So from my standpoint, Foursquare's already achieved the status of a major data aggregator, and seems to have its sights set on becoming the data aggregator.
Foursquare: The Data Aggregator?
That statement would have sounded preposterous 18 months ago, with "only" 15 million users and 250,000 claimed venues.
But while many of us in the local search space have been distracted by the shiny objects of Google+ Local (editor's note: now known as "Google My Business") and Facebook Graph Search, Foursquare has struck deals with the two largest up-and-coming social apps (Instagram and Pinterest) to provide the location backbone for their geolocation features. Not to mention Uber, WhatsApp, and a host of other conversational and transactional apps.
And buried in the December 5th TechCrunch article about Foursquare's latest iOS release was this throwaway line:
"Foursquare has a sharing deal with Apple already — it's one of over a dozen contributors to Apple's Maps data."
So, doing some quick math, we have
- Foursquare's ~20 million users (U.S.)
- Apple Maps' 35 million users (U.S.)
- Instagram's 50 million users (U.S.)
- Pinterest's 55 million users (U.S.)
All of a sudden that's a substantial number of people contributing location information to Foursquare. Granted, there's considerable overlap in those users, but even a conservative 80-100 million would be a pretty large number of touchpoints.
In fact, one thing that Wil Reynolds and I realized at a recent get-together in San Diego is that for many people outside the tech world, Foursquare and Instagram are basically the same app (see screenshots below). I'm seeing more and more of my decidedly non-techie Instagram friends tagging their photos with location. And avid Foursquare users like Matthew Brown have always made photography their primary network activity.
Providing the geographic foundation for two apps—Pinterest and Instagram—that are far more popular than Foursquare gives it a strong running start on laying the location foundation for the Internet.
What's next for Foursquare?
While Facebook is undoubtedly building its own location layer, Zuckerberg and company have long ignored local search. And they've got plenty of other short- and mid-term priorities. Exposing Facebook check-in data to the extent Foursquare has, and forcing Instagram to update a very successful API integration, would seem to be pretty far down the list.
As I suggested in my Local Search Ecosystem update in August, to challenge established players like Infogroup, Neustar, and Acxiom, in the long run Foursquare does need to build out its index considerably beyond the current sweetspots of food, drink, and entertainment.
But in the short run, the quality and depth of Foursquare's popular venue information in major cities gives start-up app developers everything they need to launch and attract users to their apps. And Foursquare's independence from Google, Facebook, and Apple is appealing for many of them—particularly for non-U.S. app developers who have a hard time finding publicly-available location databases outside of Google or Facebook.
Foursquare's success with Instagram and Pinterest has created a self-perpetuating growth strategy: it will continue to be the location API of choice for most "hot" local startups.
TL;DR
Foursquare venues have been contributing to a business's citation profile for years, so hopefully most of you have included venue creation and management in your local SEO service packages already. Even if you optimize non-retail locations like insurance agencies, accounting offices, and the like, make one of your 2014 New Year's resolutions be a higher level of engagement with Foursquare.
The bottom line is that irrespective of its user growth and beyond just SEO, Foursquare is going to get more important to the SoLoMo ecosystem in the coming year.
I admire Dennis Crowley and how he has built the company. He always wanted Foursquare to be the recommendation layer for local, but realized to get the data they needed to crowdsource - hence checkins, mayorships and badges. I believe this was always a means to an end, not the end itself, which is impressive if you consider how much foursquare has raised - in the face of much criticism.
Now they have the data (and enough users using checking-in) they have a really powerful dataset. Just this morning I had a craving for an egg sandwich in Seattle, and Foursquare pointed me toward one of the best sandwiches I have ever had at Dahlia Bakery! Last week it was doing similar things for me in London.
Can Yelp or Google get that granular? Especially for power-users like myself, for whom foursquare can tell me not only where I should go, but also who has been there of my network....
That's what Google+ is all about in the future.
They found a real good match for checking genuine content but also checking people's behavior over time. They are capable of many crazy things (like Google Maps traffic Estimation), so... why don't they recommend stuff like foursquare does?
I guess their looking for a better ad-model than they have now to match the needs of customers.
What do you think? Would love to hear your thoughts on this.
Wow! I have been under utilizing this as I had heard they were not going to even exist at all in a year. Easy to use and work with and I like it better than twitter for sure! Thanks for the info and I will be looking to figure out the best use for my small business application.
Excellent post, as always!
With all the talk this past year or diversifying your search channels and not relying to heavily on any single online source like Google, Foursquare is a great example of where you should be doing this for local clients. I have seen businesses where Foursquare provides more referral traffic then Yelp and heard lots of anecdotal evidence that Foursquare provides great offline conversions as well.
How do you see Foursquare working with large multi-location nationals? Their verification process laves a lot to be desired when working at that type of scale.
Yup. Only been stressing the importance of including Foursquare in SMB social portfolio for years :)
Glad they're seen as more 'legit' now. The editor tools for the data are good but they false/dupe venue thing is still a problem. BUT... I can say that with the official venues, they've fixed a lot of those issues.
Ah David you are a awesome marketer for writing this post, as a Foursquare user that loves their product and sees the true potential for the platform it's refreshing to read a data/seo focused post about them. I do see more Foursquare results showing in Google local results as they continue to prompt recent visitors who checkin to update or confirm details and bulk out the listings details.
I've been getting used to the Instagram post and check-in as it's quicker adds a location marker to my photo and saves me heaps of battery by doing the whole process just once. I must admit I'm really itching to play with the Foursquare ad platform but that might be something to look at in 2014 once I have some spare time to think about how I want to use it and measure it's impact.
I'm very interested to see how further partnerships can extend the Foursquare platform and I'm sure once location tagging comes to the mobile Pinterest app there will be a further surge or location based citations for Google to crawl but also a new user base.
I do find there are plenty of power users such as Wil but more than a few industry friends are regular users but I do see old inactive accounts coming to life again and new friends slowly joining. I do agree it's still heavily filled with early adopters and industry folks but as a social platform that has some actual benefit to me and my network, Foursquare is the only platform I can think of.
Had no idea Foursquare had so much potential value... Thanks for sharing!
Thing I don't like right now about Foursquare is their API. It's hard to get really good intel other than the # of checks a place has. For marketing this may be of some value, but it would be nice to see who actually checked in. This is hidden. You can look at Foursquare tips, but again it's usually not that much help.
With Twitter for instance, you can use the Twitter's API to find users who have tweeted in certain locations as long as their account are set to public. So I could use the API see what people are saying over a location. Really great for marketing.
Facebook is really problematic. Their API allows you to query for a particular location, but then you have to use a keyword. That means it can not be a wide open search like twitter. Also it brings in a lot of noise from other locations beyond your actual search.
Youtube and Instagram's APIs are both hit or miss. It depends on the situation. If it is something like a big event, like a concert, you usually can find great localized info that is relavent to the event.
Engagement with any of these social media platforms is always problematic. If you get too spammy, your accounts get shut down. This is especially true for Twitter.
IMO Foursquare has the ability to really compete against Twitter if they would change a few things.
Thanks for the really great insight David. Definitely something that I've had my finger on the pulse of lately.
Foursquare is definitely a great way to funnel juice into Google local listings as well. IMO if you can get a huge organic FS following your Google listing will pop. Actually getting actual people to engage is another thing.
I don't know what FS is holding out for. Interesting it is going in for another round of fundraising and not selling out.
Thanks for the Foursquare update. Did not know it had that many users.
Great post! At least Foursquare put all of the local data to good use, this might be their year!
Thanks for all the good insights about FourSquare. I definitely have not been that active on there and it looks like I need to start utilizing it in a variety of ways. Good Stuff.
Interesting information. Thank you! :)
It may not have had anything to do with Penguin. It may have just been that one site was healtier than the other.
Great Post Thanks for all the good insights about FourSquare.
Solid foursquare screenshot.
Foursquare needs to get back to releasing badges. That generated a ton of interest but the badges have disappeared.
Hi David,
Superb information provide about Foursquare, its quite helpful in business brand. Got this update about FS from this post, nicely describe the detail about FS. Thank you so much David for sharing such a informative post.