The newly minted partnership between Bravo! and FourSqaure is more than just the latest “mobile-app-gone-mainsteam-media” development. It reflects the beginning of a symbiotic media relationship that provides a window into the developing tiers of mobile web monetization.
Some background: FourSquare is a social network similar to Facebook and Twitter, but is explicitly mobile. Users “check-in” at various places (restaurants, shops, museums, etc.) to inform friends of their whereabouts, and write reviews and recommendations of those locations to create a profile of likes and dislikes. Those who check-in most frequently from a given location become the “mayor,” entitling them to perks and freebies based on that location’s level of participation (ex: an active FourSquare coffeeshop may offer its mayor free cups of coffee).
Back to the topic at hand: The collaboration between Bravo! and FourSquare logistically means that Bravo! celebrities from shows like The Millionaire Matchmaker, Top Chef, and The Real Housewives will be active on the network, generating their own reviews and recommendations (content is king!) to create profiles and celebrity-enhanced stomping grounds. This activity, in all likelihood, will encourage increasing participation from regular FourSquare users (celebrity allure is as high as ever, and social media has a way of making them even more relatable). And as Mashable’s Jennifer Van Grove reports, the Bravo! network at-large will provide “badges and prizes to viewers that visit and check-in at upwards of 500 Bravo-tagged locations,” and will bake FourSquare promotion into TV broadcasts.
FourSquare and Bravo! both stand to increase their online visibility and popularity – a precursor to driving greater financial earnings – through this partnership, representing what I’ve come to call “Third Tier Monetization” in the mobile social web. To understand that concept, an understanding of first and second tier monetization is in order.
“First-Tier Monetization” is the most predictable and traditional marketing monetization approach: the incorporation of direct business-to-consumer advertisements into mobile networks. We see a prime example of “First Tier Monetization” in the Blackberry Twitter client “UberTwitter,” where direct advertisements ranging from mobile applications to Pandora online radio interrupt the Twitterstream every 30 Tweets or so. “First Tier” connects businesses with would-be customers in a timely, allbeit passe means of interruptive marketing. UberTwitter makes money selling advertising space. Advertisers make money from people who eventually purchase the products or services advertised.
“Second-Tier Monetization” is made possible through participatory forums like FourSquare. And its effectiveness increases as participation grows. Businesses seeking to improve marketing and grow revenue can become check-in locations, offering freebies to mayors and perks to FourSquare users as a way to boost foot traffic and become a well-reviewed, go-to resource. As more people check-in, write reviews, and battle for the mayorship, foot traffic increases (and as basic marketing logic compels us to conclude, so to do sales). Certainly a less direct monetization method than direct ads – both for businesses and for the social network – but it is a more genuine and sustainable long-term path. Businesses make more money as their reputation improves and grows. FourSquare earns more clout which it can parlay into future monetization efforts.
“Third-Tier Monetization” is what we see here with Bravo!. The network teams with FourSquare, and broadens its brand appeal by tying its celebrities’ names to promotions of top-quality restaurants, boutiques, and other locations. Bravo! also earns media coverage and exposure for its progressive approach to outreach and marketing (NOTE: we’re still at the point where there is novelty appeal in highlighting those brands “doing social media.”) In short, Bravo! personalities, and the network as a whole, increase visibility and engagement, efforts which likely translate into positive TV ratings, which is good for ad revenue. FourSquare also earns a great deal of media coverage (increasing popularity), accrues more participating locations from that increased coverage (increasing clout), and catches the eye of other would-be media partners. Certainly, the deal with Bravo! was a healthy addition to the FourSquare bottom line, so the more media partnerships, the better.
I’ve hit tiers one through three. What’s number four?
