In an effort to compete in the group buying space, Facebook launched its own Deals feature in April 2011. As of August 2011, just 4 months later, Facebook decided to shut down its Deals feature and move out of the group buying market. Although Facebook will no longer be a part of the group buying phenomenon, the company is still aiming to cater to local businesses.
According to a public statement from Facebook:
“we think there is a lot of power in a social approach to driving people into local businesses [and] we've learned a lot from our test and we'll continue to evaluate how to best serve local businesses” (Parr).
On a side note, Google, Facebook’s fierce competitor, has entered the group buying business with its own product, Google Offers. Now that Facebook has exited the street, how will it compete? It appears the company will be creating additional features called Ads, Pages and Sponsored Stories, which will connect local businesses with prospective customers.
Are you surprised that Facebook is no longer in the group buying space? Why or why not? Has your business ever offered a deal online? If so, was it a success?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1.2 million in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a free consultation.