Facebook Deals: Better with Friends
blog.facebook.com
blog.facebook.com
Facebook is also continuing its tradition of copying other people. They are the 1000th entrant into deals, so the only hope they have of success is their huge captive audience. Even that isn't doing well for them in the location game.
Deals is a fantastic way to monetize their competitive advantage (the massive database of social profiles and friendship connections). I'd prefer they implement all the creative ideas they can to keep Facebook usable and valuable, rather than suffocating the experience with ads.
After all, they're working with aDealio, Gilt City, HomeRun, kgb deals, OpenTable, Plum District, PopSugar City, ReachLocal, Tippr, viagogo, and zozi, and those companies are either primarily or substantially in the same business as Groupon and Living Social.
Unless Facebook decides to hire thousands of additional sales employees, located in every major market, in order to support the deals channel (which is a possibility, I suppose), they're going to need to get their deals from somewhere else.
Facebook might be able to change this. Who knows? Just because it's Facebook doesn't mean its new product lines are automatically successful.