FACEBOOK LAUNCHES DEALS PROGRAM

Following the success of deals services like Groupon, Facebook decides to launch its own program today. The services will be available in the states of San Francisco, San Diego, Atlanta, Austin and Dallas, Texas in the U.S.

E-commerce services have reached soaring heights with businesses delivering effective deals for consumers’ ala group-coupon services. With leverage gained over the internet, such businesses have expanded and developed to a great level.

The social networking site has now decided it wants a piece of this cake.

Deals site like Groupon have offers valid once an estimated number of customers purchase these services. On the other hand LivingSocial capitalizes on the power social media has today and urges consumers to convince friends or colleagues to purchase certain vouchers. Upon this the consumer is offered their voucher absolutely free.

Emily White, Director of Facebook local said,

“We’re building a product that is social from the ground up. All of these deals are things you want to do with friends, so no teeth whitening, but yes to river rafting.”

Users from the 5 cities will be able to see these symbol deals at the end of their Facebook pages, starting today. Once the users click on it, offers available will appear. Purchasing, sharing and recommending of these offers on Facebook is permitted. Hence when users end up purchasing or responding with a ‘like’, their contacts will be informed via news feed on Facebook.

The social media biggie has already listed 11 companies that offer deals; OpenTable which offers reservation services for will handle displaying of local eateries and Viagogo which sells online tickets takes care of marketing events.

Facebook’s decision to enter deal services is not the first in the social media arena. Last year Twitter introduced a similar service called EarlyBird, but shelved it within two months.

Social media analyst for Wedbush, Lou Kerner believes,

“Leveraging social tools and direct sharing among friends will be ‘a key to success for daily deal companies’ going forward.”

Groupon currently has 70 million members and Living Social has 28 million members in comparison to Facebook’s 500 million.

Greg Sterling, senior analyst at Opus Research says,

“Groupon and LivingSocial have shown how much demand there is out there. Facebook, if they do this right, can have a big hit on their hands.”

Facebook, with its vast user base worldwide does stand a chance to overtake deal services like the above. But does it have the right stratagem is what we will have to wait and watch.Feel free to express your views on the same.

Posted in: Facebook,Internet,Latest News,Tricks