Facebook and location marketing

Facebook Deals launched in November 2010, with little fuss or publicity. In fact most FB users probably don't know it exists. It allows users to check into selected locations to take advantage of special offers, deals, etc. The service, it was announced last week, will now be extended to daily deals with specific offers for particular days in particular places. The trials are likely to be in a few US cities intially. What FB seems to be offering is a direct rival to Groupon.

Groupon launches in 2008 and is reported to be earning $US 760 m, mostly from the fees it charges participating retailers and venues. It trades all over the world and is said to have 30 million signed-up users. There was speculation last year that Google had bought the company for $2.5bn, though the rumours were unfounded. With Groupon users sign up to received offers based around their local city: each day they are offered money-saving products and services from providers locally: typically cosmetics and personal care (Body Shop has been involved across the UK), restaurants and hotels and similar services. There are currently nearly 50 cities in the UK linked up in this way.

This type of location-based social media marketing (also known as geo-location marketing) is one of the hottest topics in e-Business right now.

Another hot property is FourSquare which is a location-based service with 7 million users allowing users to check into places for offers and 'points'. As you can see, this is what Facebook started offering with Facebook Deals. Orange is now also getting in on the act, but with a difference. Their service allows users to check into TV programmes they are watching - with the idea being that lucky users will get their 15 seconds of fame on TV.

All of this seems to be part of Facebook's strategy of focusing more on mobile users and less on PC-based traffic. With their recent acquistion of Snaptu they are investing in technology to enable feature phone users to have a positive FB experience, as well as reportedly developing FB branded mobile phones themselves.