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Groupon’s Growth Made Possible by Facebook

Groupon.com now sports a lofty $1.5B valuation.

Techcrunch had a great analysis of Groupon last week, dissecting the site’s revenues, traffic and potential.

While there are several juicy nuggets in the post, what jumps out to me the most is:

“Groupon gets more of its traffic from Facebook than any other site, including Google”

Note that in the image above, Facebook referrals to Groupon blow everything else out of the water. Makes it difficult to be a naysayer about Facebook’s ability to drive commerce.

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  • samirsoriano

    There's definitely a huge value in Facebook marketing for B2C products – as proven by this. However, Groupon is something that took off with its initial marketing strategies, while the Groupon product, by nature, is something that gets created with a lot of biz dev muscle.

    Smaller B2C companies may not have as much ease being able to grow this way. For SMBs in the B2C space, there are products like Flowtown which can help a company identify which of their contacts are influencers on Facebook or Twitter, and lets the company tailor specific emails to encourage contacts to connect with them on Twitter/Facebook.

    More interestingly, products like Fan ReTargeting hypertarget Facebook Like ad units specifically to people who have shown interest in a product (i.e. targeting all people who have visited the product's site). With Fan ReTargeting – you get a mix of display advertising, brand activation, and product awareness all in one.

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