A new Fast Company article reports that the average revenue bump from location-based social media campaigns (Facebook Places, Foursquare) is about 2%.
“Aw drat, guess we should throw in the towel on all that nonsense and start stapling fliers to telephone poles!”
Well not so fast. Foursquare launched in March 2009 and Facebook Places launched in August 2010. These are new services being used by a niche audience. Should we be surprised that deals on Facebook Places aren’t bringing in epic 76% revenue bumps? It’s an unfamiliar form of advertising with a small audience. We should set our expectations accordingly and continue to learn while we still have room to make mistakes.