8.19.2010

Internet marketing for local business - LivingSocial.com and Groupon.com

LivingSocial.com is best known from its Facebook app business, but it also has a parallel web-based presence outside of Facebook. LivingSocial has pushed its web presence toward marketing local businesses. When I visit the LivingSocial.com URL, I get my location specific page, LivingSocial Presents Louisville - my home town.

The tempting offer is an opportunity to purchase a $30 gift certificate to a local Louisville business for only $12. It looks to be a very good deal. It was a business that I had never heard of before: Amazing Green Planet. I don't travel in that part of town often these days.

A list of U.S. cities served by LivingSocial can be found here.

Groupon.com offers a similar service. Today's deal that comes through Groupon is $25 to buy a $50 gift certificate from Gap.

Either of these two deals qualify as a loss-leader, being an offer to double your money. But the two deals, one from Amazing Green Planet and the other from Gap, are of different value to the advertisers. The potential benefits are:
  1. Awareness,
  2. Action, and
  3. Buzz
Amazing Green Planet bought a whole lot of awareness by advertising through LivingSocial.com. I had never heard of the store before, but now I have a favorable impression, I'm curious, and I know its general location. Like me, most people who see the advertisement will not act on the offer outright, but they may remember it.  I can't say the same about Gap's ad. I didn't learn anything new. It was  just another Gap ad.

I was tempted by the Amazing Green Planet offer because it seemed to be such a good deal, even though I wasn't sure what the store sold and there isn't much I want to buy. I fell back to my default position that the best way to save money is not to spend it.

In both instances I was tempted to take voluntary action to share these two deals with some friends.  With Amazing Green Planet it was because I though the store looked cool and I want to know if any of my friends had knowledge of it.  The Gap offer would go to friends who shopped at Gap anyway.

But I didn't.  I did not buzz a single chirp, nor a tweet.

Seealso: Deal or no deal? What’s the deal?

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