Follow the Money
It’s been a tumultuous past few weeks for New York startups, some of whom are scrapping long-held ideals in order to seek profitability. Looks like it’s time to finally make some money.
Last month, Tumblr announced it will now offer paid ads, a reversal from founder David Karp’s prior opinions about advertising–mainly, that it kind of makes him sick. And today, Foursquare cofounder Dennis Crowley told the Wall Street Journal that the location-based social network is planning to offer personalized coupons, tailored to each individual user, beginning in July. The news builds on earlier reports about Foursquare’s new paid media platform, scheduled to launch in June.
It is a truth universally acknowledged that those least in need of a leg up are most likely to receive it. Into that aphorism rolls Merchant Exchange, a new “luxury rewards network” based in New York targeting a subset cofounder Michael Tolkin likes to call “wealthy millenials.”
By Mr. Tolkin’s definition, that means New Yorkers 25-t0-35 who spend between $$30,000 and $40,000 annually, which we imagine refers to disposable income.
“They have money to spend and want to be discerning,” Mr. Tolkin tells Business Insider. “They’re educated and busy; they’re not coupon-clipping.” Presumably they’re also not whipping out their coupon shears because it’s 2012, but who are we to quibble with a noble benefactor of today’s youth-ish.