The daily deal market is about to become considerably more crowded as two giants elbow their way in. It’s hardly surprising that they would be hungering for a piece of the pie in this explosive industry. Until now, the innovator Groupon, (the fastest growing company ever) has dominated the market with Living Social coming in a distant second along with hundreds of copycats trying to grab at the crumbs. Facebook Deals went live on April 25th in five cities while Google Offers recently launched in Portland with three more cities on the way.
Facebook will be playing to their strengths and integrating deals for social events such as wine tastings, concerts, and exercise classes onto its site through its news feeds and also by email. Facebook’s entry into the market will be facilitated through its existing 500 million users, many of whom spend time on the site on a daily basis. Rumor has it that contrary to others in the market, Facebook will be charging an advertising fee rather than taking a 50% cut of the proceeds from each sale.
Google, on the other hand, still reeling from Groupon’s six billion dollar snub, is rolling out its version of what so far, appears to be a Groupon/Living Social clone, sending out a daily email to its database with a deal that can be purchased within a predefined time period. Unlike its competitors, Google will offer tools to help businesses measure and track their return on investment from deals.