Even before Google, in December of 2010, reportedly offered to buy Groupon for $6 billion, social coupons have been expanding like mad. You may be familiar with some of them – Groupon, Living Social, Open Table, and as of today, 04/26/11, Facebook Deals.
Facebook introduces a pilot project – Facebook Deals – that lets local businesses offer discounts through Facebook. Facebook is releasing Deals as a “test” in five cities: Atlanta, Austin, Dallas, San Diego and San Francisco. Facebook Deals aim is to make the idea of digital coupons more social, and starting with a base of 600 million users they are in a very good position to do exactly that. You will be able to see when your friends buy something and vice versa, as well as have the ability to share those deals within your group of friends.
Coupons have to be purchased online before being used in real life. Members can buy deals with credit cards or Credits, the virtual currency of Facebook. Until now, Credits could only be used to buy virtual goods inside games and some digital products like movie rentals but with Deals you will actually be able to use Credits to purchase a voucher that is redeemable for real goods. When someone decides to buy a coupon, an item is automatically posted on their Facebook news feed, alerting all of their Facebook friends about the deal.
Facebook is looking to compete with Groupon’s social and experience oriented theme by focusing on deals that encourage members to try new and interesting experiences, like events, concerts, group lessons, and share the experience either physically or virtually with their friends.
To sign up for updates when deals become available in your area go to www.facebook.com/deals. If you are a business interested in offering deals through Facebook go to http://www.facebook.com/deals/business/
What do you think about Facebook Deals? Can you see yourself using the service, or would you prefer Facebook to stay out of the group buying market? Do you think they will or could be bad for sites like Groupon and Living Social? What do you think about their virtual currency and how long before that virtual currency becomes a force to reckon with?
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