Facebook Deals, ADOTAS’ Assessment of the Daily Deal Space, and SXSW!

01 Sep. 2011

In advance of the forthcoming Labor Day holiday, we’d be remiss in not providing our own associated “BBQ/Beach reading”. We’d like to start with some admittedly-self-referential coverage from Gavin Dunaway at ADOTAS regarding the recent “demise” of Facebook Deals, as well as the future of the daily deal space.

Gavin writes,

“But all the other news in the space suggests the daily deal game has hit terminal velocity. It almost feels as if the world is waiting on Groupon’s IPO as a bellwether for the future of daily deals; so far the news has not been promising.

However, I’m with Jay Weintraub in believing the daily deal space isn’t going to die — it is going to be transformed. My money is on white-label discount platforms like Group Commerce and Tippr, which offer technology and services for enabling group-buying at the local publisher level through white-label platforms. In particular, such platforms seem to offer a better proposition for smaller and local businesses in terms of targeting.”

You can read the entire article here.

Regarding Facebook Deals, the biggest lesson here seems to be that you can’t just expect to “flick on” a deals program and expect it to work (even if you’re a major media brand). These programs need to be thoughtfully integrated to the existing experience/brand, and there’s a significant education effort that needs to take place before consumers can be expected to understand the program’s purpose and participate.

Additionally, it also justifies our belief that a pre-existing “transactional mindset” is something that helps publishers succeed. While visitors to DailyCandy and Thrillist may not be used to making purchases directly from these sites (though in the case of JackThreads, they are), they ARE accustomed to receiving recommendations re: purchasing decisions. Juxtapose that with Facebook, which is probably the least transactional platform out there – in fact, people tend to HATE when a space that’s perceived as “personal” is commercialized.

In addition – as my talented colleague Dan Melinger has rightly noted – Facebook has been adamant that this was nothing more than a test. Given that Facebook is mostly interested in creating businesses that don’t require significant “scale” in terms of personnel, running their own local deals business may not be a good fit for Facebook. This obviously doesn’t signal the end for their participation in attempting to grab a piece of local commerce, rather a recalibration.

And finally, please don’t forget to support our submissions for SXSW – featuring our CEO Jonty Kelt and our VP of Merchandising Cristina Miller! You can find Jonty’s submission here, and Cristina’s submission (as a part of a panel submitted by Women in Wireless) here
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