Facebook Prepares to Launch Daily Deals
Almost two years ago Groupon rushed onto the advertising community with it’s numerous subscribers, no-out-of-pocket advertising and gigantic discount daily deals. This strange brand of promotion was highly successful generating hundreds, even thousands of deals in daily deal formed an industry.
Beware Groupon! Your identity as the number one daily deal site is in severe trouble. It has been reported that facebook, with over 500,000,000 subscribers is about to start their very own daily deal sales program. Actually, there is evidence that this story is more than gossip.
I have personal knowledge that Facebook has already started contacting businesses to acquire local advertising contracts. The business owners that informed me of these contacts, did not consent to feature their business with facebook because, in their estimation, the facebook requisites were much too harsh. But you can trust that there are many, many local advertisers that will advertise on facebook’s daily deal.
This looming shift raises many questions. Is facebook selling out for the cash? Will facebook lose its reputation as the social network with unmolested members? Will their advertising be bothersome? Will they go through a backlash from this ultra-commercial leap?
No doubt the most successful aspect of daily deals sites are their ability to reach from all around the country, or world to take a piece of local advertising. For this reason, facebook’s foray into the daily deal industry is certain to deliver a debilitating blow to customary advertising outlets such as print and radio.
Conventional advertising has decreased severely since daily deal sites started offering advertising with no up front costs local advertising. Accordingly, we are seeing customary media businesses get into agreements with group buying web sites. Late last year Cox Media Group, owner of the Atlanta Journal Constitution and quite a few radio stations in Atlanta, Austin, Texas and Dayton, Ohio announced the launch of group buying site Dealswarm.
This has evolved into a movement as quite a few conventional advertising groups are now entering agreements with group buy sites to recover left overs from the local advertising industry. How will facebook’s surfacing on the group buy scene influence this industry? Please, Give us your opinion on this issue.
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