Loving All These Deals!

In this economy and digital era, it’s no surprise that daily deal sites like Groupon and LivingSocial continue to see promising results and revenue. Of course, where there is money to be made others will follow. Case in point, both Facebook and Google have launched similar daily deal services in test markets. Some would argue that Groupon, having first in-market advantage, will continue to be victorious but digital powerhouses Facebook and Google have proven time and again to be fierce competitors. Let’s look into these new players a bit closer:

Facebook Deals launched at the end of April in Atlanta, Austin, Texas, Dallas, San Diego and San Francisco. The strategy mimics that of other sites which focuses on deals from local businesses. However, Deals gets communicated to consumers via email, via a Deals tab for Facebook homepages, and shows up in a user’s news feed when their friends purchase the deal. Competitive sites rely heavier on email but do provide tools for sharing deals through social media, however, it must be user initiated.

Facebook will continue their approach of bringing people together by focusing on deals for social events and/or deals that are for groups of people (i.e. wine tastings, concerts, etc.). In contrast, sites like Groupon and LivingSocial have for the most part focused on the single consumer (i.e. teeth whitening, salon services, etc.). Knowing how often consumers check their Facebook, I can only imagine the infinite possibilities of growth for Facebook Deals. Facebookers could eventually become conditioned to check Deals just as often as they check their news feed – which is a lot!

Probably the biggest selling point for businesses is that Deals is rumored to be commission free. No need to split profits with Facebook.

Google Offers also launched at the end of April in the following markets: Portland, New York City, Oakland, and San Francisco.  The biggest negative that Google has looming is that it’s positioned only as a search engine in the consumers’ minds – there’s no social aspect to it. As it stands right now, users must go to the Google Offers homepage and sign up to receive deals. Enhancing this with deals popping up through a user generated search or via searched locations on Google Maps may add more enticement for consumers. How perfect would it be if you were looking for directions to a new restaurant and Google Maps served up a $25 for $50 coupon for you to use?

Here is a handy chart I found online that clearly identifies what our options are as consumers (and advertisers):

Via: Online MBA