I was checking out techcrunch and found a very interesting article. They found a web page on the New York Times site that had some interesting information on Facebook Deals. Those of us that have been keeping up to date in the group buying space have been aware of the impending arrival of Facebook Deals. Now it seems that the platform will be test launching in five US cities. These cities were mentioned on the Landing page of Facebook Deals.
They aim to take on GroupOn. GroupOn has received about half the amount of funding Facebook has to date. GroupOn has received $1.14B while Facebook has received $2.34B.
GroupOn’s business is marketing to a list that they have built through Google and Facebook ads. Facebook already has the biggest list but I see that their deals will spread by people posting and liking deals on their Facebook “News Feed.”
It also seems that Facebook Credits can be used to buy deals. We need more info to see how this will work.
This could change up how businesses market their products. However, it may not be all positive. If more deals are being offered it will make it harder for businesses to charge regular prices. Many local businesses will have to rethink their business model.