Deal or no deal?

I just found out that Facebook was going to discontinue Deals (after doing more research it became clear that the release was about daily deals, not check in deals)! This comes up as a surprising news in Australia, since the launch announcement only happened a week ago with 7-Eleven, Commonwealth Bank, KFC and Westfield as initial partners.
Allfacebook reveals that Facebook USA will take daily deals off the market based on
a small business survey done in February!


The research suggested that half of the companies that had used a deal type of service don’t plan to use it again. The small business survey conducted by MerchantCircle found that 55 % of merchants who’ve offered a daily deal through a group buying service don’t plan to do so again. The report suggests that merchants prefer to use free marketing methods via social media, rather than pay premiums, and that the businesses prefer to use proven promotions rather than new ones. Most of the small, local businesses surveyed by MerchantCircle devote minimal resources to promotions: 37% say they don’t have enough time and other resources for it.

From a business point of view, the results of MerchantCircle’s survey are consistent with the social benchmarking study conducted by Nielsen and Community engine; it lists resourcing as one of the most challenging aspects of social marketing for Australian Businesses.

Regarding Deals, based on the info that I found, It looks like Facebook’s decision is motivated by internal changes and not by consumer insights:the forthcoming changes to the news feed and privacy settings would have altered the visibility of deals, potentially reducing their exposure as users choose to limit who can see various activities. These changes also include the phasing out of places in favour of location tagging”.

Will it give more room for Google + to launch geo location base system with the Android platform and its position on NFC?
Does also it mean that Groupon and the galaxy of group buying sites are due to a slow but certain death?

Marie Sornin


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