A little over 24 months ago Groupon stormed the advertising industry with it's many, many subscribers, advertising that required no upfront payment and gigantic reduced price daily deals. This strange style of marketing was very successful generating hundreds, even thousands of deals in (one day|24 hour|daily deal formed an industry.
Watch out Groupon! Your designation as the number one daily deal site is in serious danger. The recent buzz is that facebook, with over 500,000,000 subscribers is about to launch their very own daily deal platform. In fact, there is proof that this story is more than a rumor.
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 impending shift inspires many questions. Is facebook selling out for the loot? Will facebook lose its edge as the social network with unmolested members? Will their promotions be intrusive? Will they suffer a repercussions from this verycommercial jump?
Without a doubt the most valuable feature of daily deals sites are their capacity to reach out from all around the country, or world to capture a chunk of local advertising. For this reason, facebook's foray into the daily deal industry is sure to deliver a debilitating impact to customary advertising mediums such as newspapers and magazines and voice.
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 become a trend as many traditional advertising companies 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 landscape influence this industry? Please, Weigh in on this issue.
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