United States: McDonald's takes on Foursquare

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?