It's very different. When was the last time you cut off a coupon from your local newspaper (I don't even know the name of mine -> Google -> Oh, it's Daily Herald, cool!), saved it in your wallet and used it in the store a couple of days later?

Groupon's difference is: (i) it's on the internet, fueled with great publicity it has generated (ii) the brilliant social aspect of the groupon system and (iii) the deal is instantly bought now, not later. So it's not a coupon at all but a web-based deal.

Groupon is very good at creating hoards of customers; what it lacks, I think, is the consultation that should be provided to businesses about how to limit and handle the crowd. Even gap.com had a rough day when Groupon unleashed a national campaign recently.