Radio companies like Cumulus and others have been looking at ways to get into the daily deals arena after seeing the early success (some would call it hype) of Groupon. However, this story may give them a little pause. After only 4 months Facebook has decided daily deals is not a program worth keeping. You may have seen the announcement from Facebook in the company's most recent privacy changes. Mark Ramsey also has written a compelling BLOG about the Groupon phenomenon today you should check out.
"After testing Deals for four months, we've decided to end our Deals product in the coming weeks. We think there is a lot of power in a social approach to driving people into local businesses. We remain committed to building products to help local businesses connect with people, like Ads, Pages, Sponsored Stories, and Check-in Deals. We've learned a lot from our test and we'll continue to evaluate how to best serve local businesses."
Groupon is heading to the IPO market in 2012 but there are reports that even Groupon traffic is down 50%. And, honestly, how often do you use a Groupon coupon or daily deal coupon from any company? Have consumers had enough daily deals? Or does radio have a better way to deliver them to consumers for local advertisers via traditional radio transmitters. Visits to the category of "Daily Deal & Aggregator" sites are down 25%, according to market researcher Experian Hitwise.
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