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United States: McDonald's takes on Foursquare

11 May 2010

McDonald's, through digital agency Tribal DDB, Chicago, is building an app with Facebook that would allow users to check in at one of its restaurants and a location status update and featured product appear in the post, such as an Angus Quarter Pounder.

Facebook is not directly charging McDonald's to build the app; Facebook generally does not charge developers to build on its platform. But executives with knowledge say it was negotiated as part of a bigger media buy on Facebook, and McDonald's will be the first marketer to take advantage of the service.

The new feature is a direct threat to other location-based social networks such as Foursquare, Gowalla and MyTown. While these services are small, marketers have taken an intense interest in them as a means to drive offline sales. Marketers such as PepsiCo, Starbucks, Bravo and MTV have all experimented with campaigns on Foursquare.

Location-based social network Foursquare has doubled its check-in rate in just over a month and counted its 40 millionth check-in a "couple days ago", according to a Tweet from one of its developers. Foursquare may see its growth stall if deals like McDonald's gain traction with the social networking site - why would new users join Foursquare if their existing social network provides the same experience?

Source: Cream: Inspiring Innovation

Cream is a curated, global case study gallery of excellence, providing the marketing community with the latest trends and inspiration to help grow their business.

Go to: http://www.creamglobal.com