It’s easy to debate the effectiveness of “deals”, but it’s hard to come to a conclusion. I believe that “deals” can have a place in a good marketing mix, but I hear about new and smaller businesses having problems using deals more than once. It’s easy to get people excited about a product for a short time, but hard to achieve sustainable results for an advertiser using the same “it worked the first time or two” strategy.
I think that most smart marketers know this and have or would have used Groupon as a part of a larger, strategic plan. I never understood the hype about them. Making your product a “deal” means you have to first create a high perceived value. That’s why Radio and other traditional media will always be effective for local advertisers. Broadcast Media makes an advertiser sound big and legitimate which means an occasional “deal” can be effective.
I guess that means that I am for and against “deals” websites. For them in the contest that they can work, but against the hype that “deals” are a sustainable long term local advertiser plan.