In Advertising News: Groupon and Facebook Places

gap logoGap and the Groupon Deal

This last week we had an opportunity to see the power of Groupon when the company was tagged by Gap to run an nationwide promotion. The result: $11,000,000 in sales in one day (article). The deal was simple – get $50 worth of merchandise from any Gap store across the U.S. for just $25. The results were astounding, but there are a few things that should be asked:

  1. How much exposure did Gap really get?
  2. Was it worth the spend?
  3. Aside from moving a ton of product, what were the real benefits?
  4. Is the Gap really the place you go to for bargains? Do they really want to be positioned in such a way?

Sure, the economy is tough; however, there are plenty of high end retailers that are doing well regardless. More importantly, they aren’t giving their products away. I will admit that the time is great. Families are struggling and Gap just gave them a great way to save on their back-to-school needs; but are there costs?

What are your thoughts? Does the Groupon partnership help or hinder Gap in the long term?

Facebook Take On FourSquare

I will admit, I have played with FourSquare several times on my iPhone. It’s a cool service, but until now, I really had a hard time justifying any time to really devote to it.

And after Thursday, I’ll probably never use FourSquare again. Here’s why.

Facebook launched their own “locacations” service called “Places.” So why have two apps when you can accomplish the same thing with one. If you are a small business and are interested in running some “check in” promotions or contests and you have a facebook page already, your life just got easier. One integrated service and whole lot of fun you can start having with your fans.

I am sure FourSquare will stick around for a little while. They have a devoted fan base for sure and they really like being mayors and winning badges. For the rest of the world, facebook just made “checking in” mainstream.

Will you use facebook’s Places service? If so, how are you planning on using it? If you have been using FourSquare, will you stay or switch?

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3 thoughts on “In Advertising News: Groupon and Facebook Places

  1. I have similar thoughts and migrated away from FourSquare since the announcement of Places. The competitive loyalists remain but over time I think it will fade, especially as Facebook enhances their geo-platform. I shared insights on this through my blog recently:

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