Magazine article Marketing

The Verdict on 'Deals'

Magazine article Marketing

The Verdict on 'Deals'

Article excerpt

What potential is there for advertisers in Facebook's latest service, asks Sarah Shearman.

Facebook Deals' arrival in the UK last week was met with predictable fanfare. With a variety of brands, from Mazda to Boots, already signed up as partners, marketers are keenly watching to gauge the speed of user uptake and see whether there is meaningful substance beyond the style.

In the US, where Facebook Deals was rolled out last November, the social networking site claims that millions of consumers have used the service, while more than half of the participating brands have renewed their deals.

The service enables consumers to see which companies in their area are offering deals at that time, with the offer received when they 'check in' at the specific location.

Groupon and Foursquare are among the services to have whetted Britons' appetites for digital deals, but with Facebook comes a ready-made base of 26m UK users - and an instant platform for word-of-mouth marketing As brands' Facebook pages gain more fans - often receiving more traffic than their own websites - Deals could be the bridge for moving that digital relationship into stores.


It's great to be the first restaurant brand to sign up to Facebook Deals. Our customers are internet-savvy and won't have a problem with learning how it works. We are offering the first 1000 customers a free meal and drink and are sending it to our database of 300,000 customers.

The benefit for us is that we are going to be seen by a lot of Facebook users, including some people who don't know the brand.

So, it is about acquisition, but it is also about rewarding loyal customers. This is not a short-term deal for us, but we'll let the results decide that.


Some people might see it as a sell-out or 'spammy', as you are telling people you just got a Starbucks coffee only because it was free.

In the next few months more brands, particularly everyday brands, will start to use it. However, if Starbucks is doing it today, you won't see another coffee competitor doing it for at least a year. Big brands will want to be first to market so they can say they did it before their competitors and boost their community on Facebook.

It won't be an overnight success, but more brands will jump on the bandwagon as successful case studies come through.

I love the idea of being rewarded simply for telling my friends about a brand I am engaged with. …

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