Facebook Adding Local Offers to Deals Program
Facebook is getting ready to test what Bloomberg News described as
The new program will involve adding local offers, initially in
Atlanta, Austin, Dallas, San Diego and San Francisco, to its existing Deals
program. Facebook members will be able to share the offers with others on the
social media site.
“Local businesses will be able to sign up to use this feature soon,
and people will be able to find Deals in the coming weeks,” according
to a Facebook statement.
Emily White, director of local operations for Facebook,
told the Financial
Times, “You dine out, you go to concerts, you do outdoor activities.
We want to make sure those experiences are maximised.”
program also let users see offers from a variety of partner services, including
Gilt City, HomeRun.com, KGB Deals, ReachLocal, Zozi and more.
“We are very excited about the Facebook partnership. They are an extraordinarily
strong company with the largest number of page views on the web,” TJ
Sassani, chief executive of Zozi, which specializes in vacations and adventure
trips, told the Financial Times. “That’s helpful when we
talk to merchants.”
While the Bloomberg report suggests that Facebook
may be ready to take on Groupon, LivingSocial and others in the daily deal
business, it doesn’t appear as though the site is really looking to do that,
according to another piece on GigaOM.
The piece, written by Ryan Kim,
says Facebook seems more interested in aggregating deals for its members to
share rather than go all-out to compete with Groupon. Facebook doesn’t have
the infrastructure currently in place to compete, he concludes.
“To create a successful local shopping service, you need scale and big
sales teams,” wrote Mr. Kim. “That’s one of the reasons Google
still struggles in this area, because it still doesn’t have much of a
local sales force.”
- Facebook Plans to Test Groupon-Inspired Service That Offers Discount Deals
– Bloomberg News
- Facebook Is Not Ready to Take on Groupon – GigaOM
- Facebook plans discount deals programme – Financial Times (reg. required)
Discussion Questions: What do you see as the pluses and minuses of Facebook getting into the daily deal business? Do you think Facebook should go head-to-head with Groupon?