It seems that more and more businesses are seeing the benefits of using Foursquare, the location-based network, in their marketing campaigns. Only yesterday we told how Coke Australia were teaming up with Foursquare and if Coke Australia has any doubts about how advantageous it may be to them they need look no further than the example of McDonald’s.
The fast food giant has just reported on the effects of a spring pilot program that took place with Foursquare. Rick Wion, McDonald’s head of social media, shared the news at the Mobile Social Communications conference yesterday that the cost of its campaign that seems to have reaped big rewards, actually cost the company a paltry $1000, according to Jennifer Van Grove over on Mashable.
The campaign, which actually saw results of foot traffic to MacDonald’s stores being increased by 33% in just one day, consisted of 100 randomly distributed $5 and $10 giftcards for checkin on Foursquare. This simple, and it has to be said cheap, idea resulted in huge media exposure for McDonald’s and an influx of customers to the stores eager to gain their rewards. Also over 600,000 customers then began to follow the brand online.
It’s an incredible payback for a $1000 gesture, compare that with the millions that McDonald’s spend on usual forms or marketing, and certainly signifies the benefit of teaming up with a social media company such as Foursquare to increase profits. For more on this go to mashable.com. Do you think more companies will start to use social media location-based marketing? We’d be interested in your thoughts on this so please do send in your comments.