While Facebook local deals have been in the works for some time, Facebook social deals are brand new. There is already a huge buzz surrounding this new feature release. Imagine all the power of Facebook, all the interconnectivity, all the viral components working together to create unheard of group deal potential! That is what we are talking about here folks.
So let’s talk a little bit about how this works because there are some distinctions between what Facebook is trying to accomplish and what companies like Groupon and Living Social are doing. You may want to consider this as a viable local social media advertising platform.
Facebook Deals
Check-In Deals Stay the Same
Right now you can check in to a Facebook Places location through Facebook and unlock certain deals. This is really similar to how foursquare deals work. Basically, when you go to your favorite restaurant you log on to your phone, check in and if they have a deal set up you can unlock it and use it. This part will not really be effected.
Social Deals are Different
The new social deals work differently than the check-in deals. Social deals are really more geared towards events and experiences. So for instance, a good social deal would be a concert or beer festival.
The most interesting part about these social deals is that you cannot pay for them with your normal credit card, you need to use Facebook Credits. Yep, Facebook Credits Here is a quote on this from our friends at Mashable:
“By contrast Facebook’s new Social Deals, like Groupon or LivingSocial, must be purchased up front using money or Facebook Credits (the first use for real-world products/services). You actually buy a voucher that is then redeemed offline.”
As of right now this new feature is only available in a few select areas, to a few select companies. Before we go to much further, feel free to watch a video on Facebook social deals. Then you can read the rest of the commentary and important points below.
Areas Where Facebook Social Deals are now Being Offered:
- Atlanta
- Austin
- Dallas
- San Diego
- San Francisco
Companies Allowed to Run the First Facebook Social Deals
- Gilt City
- Home Run
- FreshGuide
- PoweredByTippr
- KGB
- Plumdistrict
- Zozi
- OpenTable
- ReachLocal/DealOn
- Viagogo
- aDealio
Why Could this be Better Than Groupon?
Let’s get one thing straight. Facebook has stated clearly that they are not focusing on group deals for things like dental work, laser surgery, etc. They are focused on group deals for inherently social events. This allows the new feature to play into the social nature of the site. We’ve heard time and time again that high school and college parties get way out of hand with Facebook invites. Imagine this happening for your business!
The best part about these group deals is that they can support future residual marketing. What do I mean by that? Basically, you run a social deal. But a large focus of the social deal is the information offered on your Facebook page. So, when you run this social deal you are directing people towards your page and then people turn into fans of your page. Now next time you run a deal or an online promotion you can reach out to this new community for free to promote it. Pretty cool right?
COMMENTARY: The daily deals space was crowded before, but with daily deals leaders Groupon and LivingSocial, Google Offers, regular Facebook Check-in Deals and now Facebook social deals, the deals market is getting outrageously crowded. There are already signs of a shakeout in the daily deals segment,
With Facebook Deals, users can also subscribe to emails, but the social deals can also appear in the news feed. That’s one area where Facebook should have a huge leg up on Google and daily deals giants Groupon and LivingSocial
Businesses are still getting used to Facebook marketing. Getting seen in the news feed is perhaps the most important part of that. This week, Facebook marketing firm Buddy Media released a report, giving brands tips for capitalizing on Facebook’s EdgeRank algorithm (the basis for what Facebook shows users in their news feed).
Deals will present a whole new option, and deals in general have already proven to be massively popular among consumers. Many Facebook users check their news feed multiple times throughout the day, which should ensure conversions, as long as the deals are attractive.
After the phenomenal maturation of the daily deal industry seen in 2011, a new paradigm will usher in programs that merge content with a seamless deal delivery experience. The industry focus will evolve from deal sites and daily emails to other messaging formats, providing relevant deals where, when and how consumers want them. The year 2011 was just Phase One of group buying. Phase Two begins in 2012. Here are some predictions for what portends to be another technologically eventful year in group buying, and reasons why publisher may stand to gain the most.
200 “Groupon Clones” Will Bite The Dust As Consolidation Mode Takes Off
With more than 600 companies currently operating in the group buying space, industry consolidation is going to become a very real threat to many daily deal sites. According to Yipit.com, over 170 deal sites failed in 2011. Next year the trend will continue as large companies purchase smaller rivals and other generic deal brands go belly up. Over 200 of the ‘me-too’ deal sites may close their doors within the first six months of the New Year. Meanwhile, publishers and niche sites that have found a way to integrate daily deals into their existing content, rather than just photocopying Groupon’s model, will not only survive but thrive.
2012 Is The Year of the White Label
White-label providers (e.g. Groupon, LivingSocial, Analog Analytics, Group Commerce, Nimble Commerce) will reign supreme in 2012. According to Yipit research, in 2011 white labels exhibited a transaction volume of 5-10 percent, but it may double in 2012 as much as 20 percent. Media companies, niche bloggers and digital content creators have credible brands, local sales forces and engaged audiences–critical components that large horizontal sites spend hundreds of millions to grow. The only piece these companies are missing is the technology on which to build a deal site. In 2012, white label technologies will allow publishers to prevail after the Groupons of the world have exhausted their resources acquiring new customers and finding new merchants.
Big Branded Sites’ Futures Lies In Instant Contextualized Deals
2012 will be the year big brand sites (e.g. Groupon and LivingSocial), which source hundreds of deals to large audiences with diverse interests, establish a profitable business model. But profits will only follow the ability to tailor content, matching the right customer with the right merchant. Simply put, the daily space will be dominated by the players who understand how to effectively merge content and commerce into a seamless experience, allowing consumers access to relevant deals anywhere and at any time. In 2012, Groupon and LivingSocial will make massive investments in their mobile capabilities, while Google, Facebook and other major audience aggregators will extend their commitment to the integration of location, advertorial, mobile and contextual commerce.
The future group buying landscape will be marked by consolidation, significant developments in offer targeting and the introduction of new deal delivery technology. 2011’s success, marked by the highly successful IPO of Groupon, sets the stage for other daily deal players to be taken seriously and carve out a niche of the market for their own. 2011 was not the ending for daily deal industry; rather, it’s merely the beginning.
Courtesy of an article dated April 26, 2012 appearing in WebProNews and an article dated December 20, 2011 appearing in Folio Magazine
Great post! I am always looking for new social deals. I think its great that Facebook is getting in on social deals and that you can't use a regular credit card, you have to use Facebook credits. Thanks for sharing.
Posted by: lauren | 03/08/2013 at 04:43 AM
Interesting! Thanks for sharing. My cousin has been looking for daily deals and coupons. He hasn't heard of any of the facebook promos. That is kind of sad. but oh well. He will get over it.
Posted by: Jenny Mandarin | 08/14/2012 at 10:28 AM