For every Goliath there definitely is a David. Looks like coupon-Giant Groupon has a lot to fear with the launch of the latest Facebook Deals platform, which allows people to take their social networking experience to a different level. While Facebook is by no means a small player in the social sphere, coupons and deals have always been the domain of websites like Groupon, Living Social and Yelp. Launched a couple of days ago, Facebook Deals will definitely add to the value of the social networking giant and add layers to its appeal.
The thing that works in the favor of Facebook is that they already have a strong user base comprising of over 500 million users. This is already miles ahead of the strength of the other ‘Deals’ sites put together. As they say, there is strength in numbers. If used strategically, Facebook can create an unbeatable offering that can take down the likes of Groupon. These deals will appear in the user’s news feed or in the ads section on the right of the screen.
While Facebook Deals is definitely a competitor to some of the other Deals websites, analysts claim that it is being directly pitted against the upcoming Google offers service. Understandable, considering both are competing with each other for complete internet domination. Both websites have a strong brand name and presence which will help them leverage their chances with local merchants who are set to offer deals.
The launch of Facebook Deals will also help boost one of their lesser successful offerings: Facebook Credits. Till recently Facebook Credits could only be used to buy virtual goods that didn’t go down too well with global users. Now Facebook plans to redeem themselves by allowing people to buy Deals online with the help of these credits.
The market for daily deals is huge and can easily withstand an oligopoly with players like Facebook, Groupon et al. However it remains to be seen whether Facebook Deals can trump others and make an impact in the multi-million dollar deals sphere.