Home  › Social › Social Commerce
places

Facebook Deals Are Dead

  |  August 26, 2011   |  Comments

Social site waves white flag at Groupon, while still running Foursquare-like Check-in Deals.

On the heels of Facebook proclaiming commitment to its Check-in Deals marketing feature, the social giant is killing off Deals, its Groupon competitor. Four-month-old Facebook Deals has been live in five cities but apparently never gained traction in the crowded daily deals space.

In a prepared statement emailed to ClickZ, the Palo Alto, CA-based company said it was shuttering the project in the coming weeks. "We think there is a lot of power in a social approach to driving people into local businesses," the release said. "We remain committed to building products to help local businesses connect with people, like Ads, Pages, Sponsored Stories, and Check-in Deals. We've learned a lot from our test and we’ll continue to evaluate how to best serve local businesses."

It's a good sign for daily deals leaders Groupon and LivingSocial. And Facebook's departure might be a harbinger of things to come for big-name players that recently launched daily deals initiatives, such as Google Offers, Amazon Local, and Priceline. Just this past week, consultancy Forrester Research predicted that Groupon-like daily deals will eventually die.

So, Facebook will continue competing with Foursquare by still having a dedicated feature where local merchants and retail chains can run Check-In Deals. But Facebook will no longer chase Groupon's business. The development underscores the challenges that differientiate relatively lightweight self-service geo-social marketing platforms like Foursquare from daily deals services, which require an intensive national sales force.

ClickZ Live San Francisco August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...
  • Online Marketing Analyst
    Online Marketing Analyst (FULLBEAUTY Brands ) - New YorkINTRODUCTION: Are you interested in a unique career opportunity where you can represent...
  • Copy Editor
    Copy Editor (ClickZ / Search Engine Watch) - New YorkROLE OVERVIEW The role of the copy editor for ClickZ has many demands. Ultimately, the copy...