Daily Deals: Groupon Down, LivingSocial Up, Facebook Out

Facebook abandons daily deals, but keeps check-in deals

The daily deals space is getting quite interesting, and is one that local businesses ought to pay attention to.  

For one, Facebook announced that it is shutting down its Deals service after four months. They are, however, keeping check-in deals, after changing the way Facebook Places works. 

The company said in a statement, "“After testing Deals for four months, we’ve decided to end our Deals product in the coming weeks. We think there is a lot of power in a social approach to driving people into local businesses. 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.”

What’s really interesting is that Groupon traffic has declined by nearly 50% this Summer, according to Experian Hitwise. Meanwhile, LivingSocial traffic has increased by 27%. 

"So why is there a narrowing of the gap between the two market leaders in group coupons? Perhaps it is simply a case of increased number of competitors and deal fatigue among consumers or simply not enough of the right deals. PriceGrabber released results from its Local Deals Survey in June, stating that 44% of respondents said they use or search daily deal Websites. However, 52% expressed feeling overwhelmed by the number of bargain-boasting emails they receive on a daily basis," says General Manager of Global Research at Hitwise. 

"While consumer fatigue may be one factor another key consideration for these sites is to focus on the attracting new and preferred audience segments via the inbox," he says. "Currently the audience segments for both Groupon and Living Social are very similar so it will be interesting to see how both sites and category perform heading into the holiday season."

There are 3 Comments. Add Yours.
  1. LivingSocial has been promoting their site on TV, err .. rather saturating the airwaves with thier commercials. You don’t see the others doing this so much ya know.

    Kinda like feeding the fish in a tank. They all eat, but when new food is introduced they all come running… so overfeed ;)

    Have a great week everyone!
    Snerdey

    Follow me on Twitter! 

  2. Groupon now sharing people’s inboxes with competitors. LivingSocial has more than 25 million members, meaning a growing portion of Groupon subscribers are now subscribed to at least one more deal service.

  3. You get what you pay for. the savvy consumer who uses these coupon discount sites aren’t so savvy. go ahead and try to redeem a discount coupon and see what you get. My companies sells medical supplies online. My competition does also. The difference is after a purchase we don’t continue to fill your inbox with spam and daily junk you really don’t need. we also don’t sell our e-mail list so you can be assured others won’t hound you. Don’t you love it when at a retail checkout they have to know everything about you and and the next week you get the 3rd world courtesy phone call and then your inbox fills with junk mail. Your time is valuable and so is mine. If you want medical supplies or equipment buy from me. If you want junk mail, daily solicitation, phone calls. then enjoy your "Deal of the Day".

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