Today a report surfaced that says Microsoft is in talks with Foursquare over a deal that could see the Redmond, Washington based company investing in the social check-in service. Unfortunately for Microsoft Foursquare, American Express is also interested in investing in the company which could see massive gains and profit over its new advertising business model.
Recently Foursquare was valued at $600 million after it raised $41 million from venture capital firms to aid in the company's expansion. Its new advertising business model would allow companies to place targeted ads directly to the consumers when they check-in at an establishment where an advertisers products may be served. The company has dubbed this new business model "Geo-Aware Advertising."
Some people are not a fan of targeted advertising, but I have to say that honestly I don't mind it that much. I would much rather see ads about products that I'm interested in over products I could care less about. This new advertising model actually excites me a little because I feel that it may help introduce me to new things in establishment I frequent.