Friday, August 26, 2011

Facebook ending Deals product after four-month test

Facebook says it is ending "Facebook Deals," its daily deal business, after four months of testing. It isn't immediately clear what the suspension means. Some had thought, when Facebook Deals was launched, that more-established providers such as Groupon and LivingSocial would be crushed by Facebook Deals. Deals was supposed to crush Groupon, LivingSocial.


In part, that view was driven by some "unusual" features. For starters, Facebook was not going to take any of the retailer revenue. Facebook also was going to integrate "Credits," its virtual currency. Facebook Deals advantages


It isn't clear at all that the end of what Facebook calls a test is the final word in terms of Facebook's involvement in offers and coupons. In fact, some of us would say that the longer-term future probably has offers being integrated more directly with "mobile payments" and "commerce" features and functions. There is plenty of time for Facebook to figure out where it wants to play in those other areas as well.

And when those other elements are clear, Facebook has many options.

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