Facebook Launches Local Deal Service for Places

In a move that could bring millions of local and small business advertisers to the social network, Facebook launched a deal service for Places today. The service lets merchants push deals to their existing customers and attract new ones, according to Tim Kendall, Facebook’s director of monetization.

When users open up Facebook Places, they will see a listing of nearby venues, some which will have special icons indicating deals. They can pull up the deal, and with two clicks, they can claim it. When they go to the store or restaurant later, they can show the staff their Facebook app to redeem the deal.

The most interesting part of the product is that Facebook isn’t taking a cut of revenue for these discounts, posing a challenge to smaller competitors that use deal revenue as part of their business model. On a business’ Places page, they can set up an offer. There are four kinds:

  • Individual deals, which reward a customer if they check-in once.
  • Loyalty deals, which reward customers for a certain number of purchases or check-ins.
  • Friend deals, which reward customers if they bring in extra friends.
  • Charity deals, which allow businesses to donate to charity for every check-in they attract.

Facebook attracted more than 20 initial partners to launches the deal service. Gap is one of the first; the clothing company is giving away pairs of blue jeans to the first 10,000 customers who check-in.

Another partner is North Face, which will give $1 to support National Parks for every customer who checks-in. The Palms Hotel will be giving away a free third hotel night for people who stay two nights. The Golden State Warriors basketball team will let fans who check-in during November go to an exclusive event after the game with a player.

Facebook is opening up deals to 20,000 businesses initially and then will make it available to everyone over the next few months. The new deals service puts Facebook in even further competition with predecessors like Foursquare and Gowalla, which have offered similar coupons for months.

It also makes Facebook a potential rival to another big social deals company, Groupon, which is backed by the same venture investor Accel. Groupon offers a select number of deals a day in specific cities and it is reportedly working on a self-serve model, which will let store owners create their own deals.

Founder Mark Zuckerberg said Places deals are free now, which could undercut Groupon. But he said the company could consider making money from it in the future if it’s in the interest of the user community.

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13 Responses to “Facebook Launches Local Deal Service for Places”

  1. Facebook Deals « Wir sprechen Online. says:

    [...] goes local business, enables merchants to push deals out to existing and new customers; [...]

  2. Facebook Application Developer says:

    Ok Now This is going to be exciting!. It has created some buzz over the net already!

  3. Facebook pimpt ‘Places’: Rabatt-Aktionen sollen Foursquare und Co. das Fürchten lehren | Basic Thinking says:

    [...] konnte Facebook eigenen Angaben zufolge 20 Partner für das Projekt gewinnen, darunter auch GAP. Das Bekleidungsunternehmen, [...]

  4. Facebook Places: Foursquare und Co. sollen erzitternIT Kontinent – Hardware News & Tests | IT Kontinent - Hardware News & Tests says:

    [...] unter “sichern” abspeichern, zum Anbieter gehen und seinen Deal einlösen. In seinem Blog beschreibt Facebook, dass bislang 20 Partner gewonnen werden konnten – noch nicht die Masse, [...]

  5. Girls Out Loud Episode 17: Incentives and Topless Female Inequality | CuteGeek says:

    [...] Facebook Places + Deals— http://www.insidefacebook.com/2010/11/03/facebook-launches-local-deal-service-for-places/ [...]

  6. Jonathan Trenn says:

    Yes, this is exciting and could bring major changes…but let’s not create hype. It’s not going to bring in “millions of local and small businesses”.


    That’s part of the problem with all of this. Teh solid majority of these local and small businesses don’t have people on board who will fully understand these concepts. And, as this picks up, it has to become more than just offering discounts. Not everything promotional will be price oriented. Companies don’t work that way. It affects branding.

  7. Facebook Deals will need to wade through the hype to reach it’s promise - Digital Street Journal says:

    [...] seeing a lot of hype on this, suggesting that millions of small and medium businesses (SMBs) will be joining, changing [...]

  8. 5 Reasons Facebook Will Be the Marketing Requisite in 2012 | Beyond Social Media Marketing... Entwine Inc says:

    [...] has generated a lot of BUZZ lately with its unveiling of a new location based “Places” with local deals. Successful companies are integrating Facebook into their marketing strategies. Fortune 500 [...]

  9. 5 Reasons Facebook Will Be the 2012 Marketing Requisite - Kingmaker Global says:

    [...] has generated a lot of BUZZ lately with its unveiling of a new location based “Places” with local deals. Successful companies are integrating Facebook into their marketing strategies. Fortune 500 [...]

  10. Facebook Acquires Hyper-Local Mobile Advertising Startup Rel8tion says:

    [...] far, Facebook has only monetized mobile users through its location-based promotions system Facebook Deals, which shows users and their friends discounts at local businesses when they check-in through [...]

  11. New Facebook Deals Page Offers Promotion Locator for Users and a Guide for Admins says:

    [...] originally launched Deals with a handful of brands in November, but it was only available in the U.S. for iPhone and [...]

  12. Facebook Launching Local Deals Subscription Service « ScannableMedia says:

    [...] launched in the US in November, and in Europe in January, but has yet to see widespread adoption by [...]

  13. Starbucks Already Advertises Against Facebook Places Offers // RyanSpoon.com says:

    [...] Facebook shook up the local deals space with their Facebook Places announcement: the local deal platform which now competes directly with Foursquare, Yelp, Groupon, etc. Facebook [...]

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