Click here to preview the new Fast Company

Want to try out the new

If you’d like to return to the previous design, click the yellow button on the lower left corner.

Location Lucrative: Check-in Services Boast Coveted Demographics

Foursquare now boasts 5 million users with 25,000 newcomers signing up every day. But that massive growth isn't the only reason the company turned down a $140 million offer (likely from Yahoo), as revealed this week. The demographics of its users may be far more valuable in the long run.

According to a report released Friday by Forrester Research, location-based services such as Foursquare and Gowalla are attracting some top clientele. Location-based app users are far younger and more affluent than the average online user. Around 86% of those checking in are under the age of 43. More than 70% of users have earned a college degree or higher. And most impressively, the average annual income stands at $105,000—at least 30% more than the average Netizen.

What's more, location-based users are very influential, reports Venture Beat. "Geolocation users are 38% more likely than the average U.S. online adult to say that friends and family ask their opinions before making a purchase decision," wrote Forrester's Reineke Reitsma.

These are demographics that advertisers covet. The only issue here are the services' adoption rates. A previous report from Forrester showed just 4% of online adults have ever used check-in services.

But the trajectory of Gowalla and Foursquare—with so many users signing up daily—might not slow advertisers from checking in, too.

Follow Austin Carr on Twitter.

[Photo by Saccodent]

Add New Comment