Groupon Signs Exclusively with AdParlor for Facebook Ads

Groupon has signed an agreement to allow full service advertising services provider AdParlor to handle the local deals network’s entire Facebook advertising spend. The exclusive contracts represents tens of millions of dollars in spend, as Groupon uses Facebook ads extensively to drive email signups and sell daily deals.

However, Facebook’s own upcoming local group buying coupon service Deals will have placement in the news feed, so Groupon’s ads will soon have to compete with a more centrally visible competitor. This could drive up the cost per acquisition for Groupon, which could lead it to either advertise less or have to spend more with AdParlor to achieve the same conversion volume.

Groupon has been advertising on Facebook and using Facebook Connect for over a year. Now, Groupon’s API will be connected to AdParlor’s Facebook Ads API tool, which allows the company to A/B test tens of thousands of ad variants and dynamically shift budgets and optimize bids for maximum return on investment. AdParlor has one of the most efficient and sophisticated tools for attaining conversions via Facebook ads.

By relying on AdParlor, Groupon can increase efficiency and concentrate on other parts of its business. Facebook’s location, interest, and demographic targeting is crucial to Groupon’s advertising strategy, so it needs to continue advertising there even as Facebook prepares to launch a competing daily deals coupon service.

With Groupon and other daily deals providers relegated to the sidebar ad units and Facebook’s own Deals product front and center in the news feed. Therefore, the Facebook user base’s coupon needs might be met before users can notice Groupon’s ads.

Finally, the deal with AdParlor could lead other advertisers to assess their own Facebook advertising efficiency, and consider signing with AdParlor or another Facebook Ads API service provider.

Facebook Marketing

Mediabistro Event

Facebook Marketing

Starting January 13, work with the group marketing manager of social media at Microsoft/BingAds to grow your business on Facebook! In this course, you’ll learn how to set up your company page, understand Facebook best practices, and execute a monthly content strategy. Register now!


Leave a Reply

One Response to “Groupon Signs Exclusively with AdParlor for Facebook Ads”

  1. Groupon's Evolution Is Hurting Facebook (But Helping Google) - Forbes says:

    [...] is only one advertiser, of course. But it’s one that spends tens of millions of dollars annually on Facebook ads — or did, until it decided it had enough customers for [...]

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Assistant Editor

8 Inc.
New York, NY

Copywriter & Editor

Santa Monica, CA

Director of Marketing & Communications

Neumans' Kitchen
New York, NY

Social Community Manager

Tallahassee, FL

Editorial Director

Phoenix House
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us