Groupon, LivingSocial getting killed by FB

^^^

U sure you should be outing all this on a public forum?

Also, you gotta learn to have thicker skin if you are going to start becoming an avid poster around here....or else it could become real embarrassing real fast.
 


^^^

U sure you should be outing all this on a public forum?

Also, you gotta learn to have thicker skin if you are going to start becoming an avid poster around here....or else it could become real embarrassing real fast.

Don't worry I am not taking this personally, I just enjoy a little banter now and again, if a guy wants to talk business let's talk business :)

Also, all the information I spoke about is available online generally through other media sources, I am not silly enough to discuss anything others wouldn't know about.

Not unless I was high ;)
 
This is getting to the point where we are all going to have to collectively make a conscious effort to stop using Facebook and tell them to fuck off before we're all rocking Facebook sneakers and shit, can't believe how fast this shit blew up over the past few years.

hahahahaha you're right!
facebook-shoes.jpg
 
Ha, if you looked at when I joined Wicked Fire, it was about 2 years ago if not more. Groupon hasn't even been going that long... I do wonder though, how I would 'market' Groupon though to Wicked Fire members, please expand on this.
Well, you never know around here. We're a forum full of marketers and it wouldn't be the first time someone created and aged accounts for future use. -In this case to possibly get marketers here working for groupon, who you now are paid a commission for finding... Just a theory though, not really an accusation. ;)


I guess you know nothing about the Chinese E-commerce market, probably just ignorant to the fact I mentioned it's the largest E-commerce market in the world and one that is growing faster than anything other market ever has.
This was obvious 5 years ago. As mentioned before, this is a forum of marketers.


Well, 600 million members may sound like a lot, heck it is a lot, is nothing compared to the Chinese market, and is nothing compared to Groupon's Chinese partner Tencent, yes the company who owns the largest instant messaging service in the world 'QQ' let alone several other extremely large companies that put Western companies such as Facebook and MSN to shame.
Now that I didn't know. Touche.

I've heard of QQ before and if Groupons' partnership with them is strong and excludes FB from their "turf" then perhaps Groupon can survive afterall...

In China. Been brushing up on your Mandarin? ;)

As you are aware Groupon's business model isn't focused on user-engagement, rather on purchases unlike Facebook where people may keep their tab open all day long people go straight to Groupon purchase and go on again the next day, who cares about user-engagement when you have 'loyal repeat customers'.
If you ain't got the eyeballs you don't fill the sales funnel.

Groupon would have to Create the traffic. This is expensive. FB has all the traffic they'll ever need already.


At the end of the day, it's return on investment, individual customer value, average customer order, percentage of return customers that makes the business, not how long users engage with the site or how easy the site is to use. Perhaps you should take a long think about that.
Just did. Traffic is still very important. Your comrades at QQ better come through for you or it's lights out.


I think you mistake my point of view, just because I work for Groupon doesn't mean I think Groupon will take over the world...
I was responding to your words: "if all goes well in China then Facebook will have NO chance of competing with Groupon merely because the capital, brand awareness and overall asset value of Groupon will be much larger than Facebook even. "

That's pretty pro-groupon talk. -But I give you credit for qualifying it based on QQ's partnership, now that you've spill that can of beans.


...Facebook deals is going to be integrated and launched but they ARE not only having their OWN sales team but they will ALSO offer deals from OTHER group-buying websites, so that remark about Mcdonalds and wendy's is totally contradicted by this:

Gilt City
Home Run
FreshGuide
PoweredByTippr
kgbdeals
Plumdistrict
Zozi
OpenTable
Reach Local
Viagogo
aDealio

So, what you see is a company allowing their potential competitors promote THEIR OWN products/deals through Facebook deals.
I don't know them all, but the bizzes you just mentioned do not appear to be group-deal sites like groupon. Yes, McDonalds can partner with Coke and sell their products. No, McD's cannot partner with Wendy's and sell Frosties. That is a psychological no-no that would basically devastate both brands in the mind of consumers.
 
Facebook won't hurt Groupon majorly - I've worked in this sector, and the value is in the merchant relationships rather than just the userbase.

Unless FB can hire a shit-hot sales team, they won't catch up there. Most of the merchants need selling on this because they're scared of stuff like devaluing their brand.

The sector as a whole is fragmenting - there are very competent niche deal sites springing up all over the place. Those are more of a threat imo.

I don't know if your experience corroborates this Willyboy, but Facebook / Social isn't the main channel for group buying. PPC + Email marketing is where the juice is. FB leads don't pan out anywhere near as well in terms of Lifetime Customer Value.

If Google started slapping Groupon-style signup pages left right and centre (because they are in effect squeeze pages), that would hurt member acquisition a lot more than any Facebook shenanigans.
 
Well, you never know around here. We're a forum full of marketers and it wouldn't be the first time someone created and aged accounts for future use. -In this case to possibly get marketers here working for groupon, who you now are paid a commission for finding... Just a theory though, not really an accusation. ;)

My apologies for perhaps coming off a little strongly, it wasn't that I took it personal merely that I enjoy a little banter now and again. As for the commission, I merely get paid a wage when I am in work, unfortunately no commission for me :'(

Also, to make clear I find advertisers and affiliates, mainly CPA and Revenue share based I get paid a monthly wage for this.

This was obvious 5 years ago. As mentioned before, this is a forum of marketers.

Now that I didn't know. Touche.

I've heard of QQ before and if Groupons' partnership with them is strong and excludes FB from their "turf" then perhaps Groupon can survive afterall...

In China. Been brushing up on your Mandarin? ;)

Yes very true, many still don't realise how large the Chinese E-commerce market is merely due to the lack of media attention in the West, and that's down to so many failed Western companies, Facebook, Google, Yahoo, eBay...and the rest.

Yeah, QQ have over 700 million subscribers and are in the Alexa top 10, think they are or were about 2nd. As for Facebook in China, it is banned so they have no way of competing there.

As for my Mandarin, it is 'so so', I have been China 3 times already though :)

If you ain't got the eyeballs you don't fill the sales funnel.

Groupon would have to Create the traffic. This is expensive. FB has all the traffic they'll ever need already.

Facebook has traffic from subscribers, brand awareness and advertising, such things are necessary when starting a company, these are to a degree still necessary for Groupon however I am pretty certain the ROI per user is far higher for Groupon therefore the expense is covered by those who purchase. In the UK, Groupon is the largest paid advertiser for Google Adwords, so you can imagine how much we spend worldwide on paid advertising, crazy amounts.

Just did. Traffic is still very important. Your comrades at QQ better come through for you or it's lights out.

I was responding to your words: "if all goes well in China then Facebook will have NO chance of competing with Groupon merely because the capital, brand awareness and overall asset value of Groupon will be much larger than Facebook even. "

Very true, without the JV Groupon would find it incredibly hard in China, there is over 1,000 Groupon clones in China already and with a lack of legislation, copyright and patent laws the Groupon brand can be exploited as much as possible, thus being why Groupon.CN is not even Groupon - GaoPeng.com is Groupon in China.

One thing I do admire, is Groupon's courage for entering the Chinese market when so many others have failed and respect them for actually seeking a strategy to entry, thus being to JV with one of the most powerful, largest companies in China.

The key to succeeding I think is communication & understanding, communication between those employees and managers in China and those who are commanding the launch in Germany, as well as the cultural understand which is necessary for the success, let's just hope Germany realises this.


I don't know them all, but the bizzes you just mentioned do not appear to be group-deal sites like groupon. Yes, McDonalds can partner with Coke and sell their products. No, McD's cannot partner with Wendy's and sell Frosties. That is a psychological no-no that would basically devastate both brands in the mind of consumers.

Yes, KGBDeals is a group-buying company, therefore this is their competition as for the others I don't know all of them since I am more focused on Groupon UK.

Anyways, thanks for the chat, hopefully other members find it useful :)
 
Isn't groupon and living social 1 deal A DAY? That means, in a year, they can only give out 365 coupons (to each city and -the vacations).

Don't see why there couldn't be 100's of these companies.
 
Isn't groupon and living social 1 deal A DAY? That means, in a year, they can only give out 365 coupons (to each city and -the vacations).

Don't see why there couldn't be 100's of these companies.

They were but they manipulated this by having extra deals each day such as side deals and national deals. Groupon now for example has in the UK at least an average of 3 deals a day, in London there are sometimes 5 or 6 deals a day.
 
Facebook is definitely going to change the deal game, but I think that Groupon and Livingsocial are experts in this area and are going to come out with some new way to reach customers. I think there will lead to more innovation in the area...

I am a huge fan of these sites, I think they are going to become a way of life for alot of people so I am happy that there will be more competition as it will effect, us, the consumer in a positive way.

I see that on ESPN.com, there is a powered by groupon section featuring the deal of the day...I think its great.
 
FB will hire experts on this subject if they haven't already.

I'm just wondering when the faceSearch will come out to destroy google.
 
I predict:

Facebook becomes a 'Group Coupon Aggregator' and charges places like groupon and social living a 50% revenue share for advertising through their network.

Caching!


This will hurt small business profit margins, but help groupon (and other copy-cats), as well as facebook.
 
Please, Facebook will put a dozen fresh college grads on the task and have a hard time penetrating anything beyond already internet savvy merchants.
Groupon and LivingSocial are putting hundreds/thousands of fresh college grads on the task for them... and it seems to be working well.

Facebook has amassed quite a team of experienced sales leaders, and I can only imagine that some of these people are involved in their deals launch:

Top Microsoft ad exec leaves for Facebook | The Microsoft Blog - seattlepi.com
Grady Burnett leaves Google to run global online sales for Facebook - Crain's Detroit Business - Detroit News and Information
Google
Facebook Hires Veteran Sales Executive Joanna Shields, Targeting Europe, Middle East and Africa Markets
Facebook Hires Google’s Head Of Latin America Sales
 
What happens when the advertisers on groupon try facebook deals?

Well the same shit happens as groupon except when my friend "likes" the coupon/deal he just bought, I go great that sounds fucking awesome, and I too buy the coupon. Now I "like" it too because it seems so awesome, so 5 of my other friends now buy it also.

Facebook wins.
 
I can not agree this more.
For daily deal sites, no one can own it fully. There are over 1000 such sites in China. At least 20% are doing not bad, at least make some money and can afford the company.

You do realise the scale of the E-commerce marker in China is not even comparable to that of the US or Europe, so having 1,000 clone 'group-buying' sites able to run as companies and allowing their owners to make a living is nothing. Also, considering the poverty gap in China is massive, cheap labour, and being able to live on a couple of dollars a day makes creating a groupon clone and being able to live and eat, is much easier.

However, yes the Chinese market is currently built with over 1,200 clones but I would assume the larger competitors, take a massive chunk of this probably about 90% of the market. This is just my speculation...