As data usage expands into new dimensions, from 2-D print to the internet and now geolocation, spam will tag along.
Foursquare is offering an essentially useless promotion, a Starbucks frappuccino special that is taking on a distinctly spam like aspect: It’s a low-value offer available only to a tiny number of people.
Tod Maffin noted that the ubiquity of Starbucks, with the chain’s next-to-worthless Foursquare offer, poses a serious challenge to the app’s usefulness. It is location spam, LBS spam or “Something You Aren’t Interested in Nearby!”
There are more Starbucks in this city than stop lights. One intersection even has two Starbucks! That means that pretty much any time you use Foursquare in Vancouver, you’re going to get an offer from Starbucks.
Problem is, the Starbucks offer is lousy. It’s only for the person who has checked in the most — and even then, it’s a cheap offer: $1 off a limited number of their cold beverages.
Apparently the law of diminishing returns from too much advertising can move on to a second phase of dis-utility, which actually drives customers away. This is an even worse outcome than not advertising at all!
Forrester gives the concept some in-depth coverage: Foursquare Advertising Getting Less Interesting.