Facebook Deals launched on April 25 and already the limited city release is proving to be a positive venture for the world’s largest social networking website.
On its face there is very little different between Facebook Deals and competitors that include Groupon, LivingSocial and Google Offers, they all offer vast discounts on various deals, sometimes more than 50% off certain offers, however the way in which the site is attracting businesses, site members, even musicians could very well give Facebook a leg up on the competition.
Let’s start with the cost of entry. Facebook at this time is not charging businesses to advertise their products, instead businesses are encouraged to purchase ad units to target customers in their demographic. If you have ever used the Facebook advertising system you know that you can choose to target members by age, city and other demographic information which means you won’t be wasting time selling dentures to an 18 year old male outside of your cities advertising scope.
Second, Facebook Deals is sharing deals through emails and user profiles (specifically through the Newsfeed), adding a social element that their competitors can not possibly match. For example John Doe buys a new Hurley t-shirt, that t-shirt which was discounted by 50% is then shown in their friends newsfeeds and more than likely at least some of their friends share the same interest in clothing as them, perhaps they have a lot of skateboarding friends for example. It’s this element of social sharing that Groupon and other social buying sites lack. [Read more…]