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Facebook Launches Social Deals to Compete with Groupon!

While Facebook local deals have been in the works for some time, Facebook social deals are brand new. There is already a huge buzz surrounding this new feature release. Imagine all the power of Facebook, all the interconnectivity, all the viral components working together to create unheard of group deal potential! That is what we are talking about here folks.

Facebook Launches Social Deals
Facebook Launches Social Deals

So let’s talk a little bit about how this works because there are some distinctions between what Facebook is trying to accomplish and what companies like Groupon and Living Social are doing. You may want to consider this as a viable local social media advertising platform.

Check- In Deals Stay the Same

Right now you can check in to a Facebook Places location through Facebook and unlock certain deals. This is really similar to how FourSquare deals work. Basically, when you go to your favorite restaurant you log on to your phone, check in and if they have a deal set up you can unlock it and use it. This part will not really be effected.

Social Deals are Different

The new social deals work differently than the check-in deals. Social deals are really more geared towards events and experienced. So for instance, a good social deal would be a concert or beer festival. The most interesting part about these social deals is that you cannot pay for them with your normal credit card, you need to use Facebook Credits. Yep, Facebook Credits… Here is a quote on this from our friends at Mashable:

“By contrast Facebook’s new Social Deals, like Groupon or LivingSocial, must be purchased up front using money or Facebook Credits (the first use for real-world products/services). You actually buy a voucher that is then redeemed offline.”

As of right now this new feature is only available in a few select areas, to a few select companies. Before we go to much further, feel free to watch a video on Facebook social deals. Then you can read the rest of the commentary and important points below.

Areas Where Facebook Social Deals are now Being Offered

  • Atlanta
  • Austin
  • Dallas
  • San Diego
  • San Francisco

Companies Allowed to Run the First Facebook Social Deals

  • Gilt City
  • Home Run
  • FreshGuide
  • PoweredByTippr
  • KGB
  • Plumdistrict
  • Zozi
  • OpenTable
  • ReachLocal/DealOn
  • Viagogo
  • aDealio

Why Could this be Better Than Groupon?

Let’s get one thing straight. Facebook has stated clearly that they are not focusing on group deals for things like dental work, laser surgery, etc. They are focused on group deals for inherently social events. This allows the new feature to play into the social nature of the site. We’ve heard time and time again that high school and college parties get way out of hand with Facebook invites. Imagine this happening for your business!

The best part about these group deals is that they can support future residual marketing. What do I mean by that? Basically, you run a social deal. But a large focus of the social deal is the information offered on your Facebook page. So, when you run this social deal you are directing people towards your page and then people turn into fans of your page. Now next time you run a deal or an online promotion you can reach out to this new community for free to promote it. Pretty cool right?

Have a question or comment about the Facebook social deals? Add it below!

About Garry Grant

Garry Grant is a veteran expert in search engine optimization and the digital marketing industry. With nearly 20 years of experience, Garry has successfully built a multi-service operation at SEO, Inc., developing proprietary technologies through complex strategic solutions. He has extensive experience in key initiatives and operational responsibilities grounded in information technology and performance management.

Garry’s expertise and esteemed reputation, coupled with SEO Inc.’s impressive client success record has earned him such accolades as Entrepreneur Magazine's 2005 Hot List for the Hottest Internet Property, Inc. 500 2007 Honorary award for Fastest Growing Private Company in America, an Inc. 500 top 50 Company in San Diego, and interviews with The New York Times, The Wall Street Journal, WIRED, Entrepreneur and The Huffington Post.

Garry Grant began his online career in 1993 creating strategic Web and e-business solutions for, The Rush Limbaugh Show, Premiere Radio Networks, Clear Channel Communications, EarthLink and Artisan Motion Pictures. Today, Garry and SEO Inc.’s highly skilled digital strategists develop proprietary technology and strategic digital marketing direction for Fortune 500 companies including, SC Johnson, McAfee,, Inc Magazine, IGN, Tacorri, LPL Financial, National Kidney Foundation, G4 TV, Fuel TV and Sony, just to name a few.