AMAZON LOCAL

FACEBOOK DEALS

SOCIAL COMPONENT

NUMBER OF DAILY OFFERS MOBILE APPLICATIONS INTEREST PERSONALIZATION

MARKETS

Facebook Deals · 5 Google Offers · 6*

Groupon · 565+LivingSocial · 200+

Amazon Local · 14

DEAL TYPES

ONEGoogle OffersAmazon Local

MULTIPLEGroupon

LivingSocialFacebook Deals

YESGroupon

LivingSocial

NOGoogle OffersAmazon Local

Facebook Deals

YESGroupon

LivingSocial

NOGoogle Offers*Amazon Local

Facebook Deals

U.S. SITE SNAPSHOTS

BEST PRACTICES

Groupon led the daily deal site trend and is in the most markets with the highest number of subscribers.

Amazon Local will likely continue to essentially serve as an extension of LivingSocial, with its key differentiator being shorter expiration dates.

Google Offers is in its elementary phase but has potential when combined with Google Wallet.

Facebook Deals gives every Facebook user automatic access. Its success will depend on customer willingness to purchase in a purely social setting.

LivingSocial is more selective with merchants and skews toward younger, more active and social customers, with bigger ticket items. Family deals are unique to LivingSocial.

DEFINE GOALS UP FRONT Merchants often run deals with the hopes of gaining new customers, only to realize that they essentially gave their existing customers a 50%+ discount. Determine whether driving immediate sales or gaining new life-long customers is the goal. Then structure your deal accordingly.

PREPARE FOR THE DEALEnsure that there are enough staff members and supplies to support the deal redemption. Train staff on daily deal redemption and customer service. Remember, if the goal is to gain long-term customers, a poor first experience is hard to overcome.

NEGOTIATE SMARTLYEverything is negotiable: from the percent the deal site takes, to expiration dates, to payment. Understanding the terms of competing deal sites will aid in negotiation.

iPhone Android BBMobileWeb

* Google Offers does not currently have mobile apps but will likely offer iPhone and Android.

Facebook Deals · Atlanta, Austin, Dallas, San Diego, San Francisco

Google Offers · NYC (Uptown, Midtown, Downtown), San Francisco, Oakland, Portland *Coming soon to Austin, Boston, Denver, Seattle, Washington DC (July 2011)

Amazon Local · Palm Beach, Boise, Chicago, California (7), Washington (4)

LivingSocial · 54 cities in Europe, 44 cities in Australia, 316 cities in North America

Groupon · 43 countries, 182 cities in North America

SUBSCRIBERS

LivingSocial · 40MM

Groupon · 83MM

Google Offers · 200MM*

Facebook Deals · 600MM*

Amazon Local · N/A (beta)

* Google and Facebook accounts needed to receive deals. Having an account results in automatic subscription.

= 10MM

© August 2011. This only shows the major players. There are hundreds of other daily deal sites worldwide.

Find us online @T3ThinkTank and www.T-3.com

A VISUAL GUIDE TO

5 KEY DAILY DEAL SITES

GROUPON LIVING SOCIAL

GOOGLE OFFERS

Daily deal sites deliver personalized deals that are limited in number to customers. Key differences among the most popular sites are visually outlined below.Last updated August 2011.

BROUGHT TO YOU BY

FOOD

GrouponLivingSocial

Facebook DealsAmazon LocalGoogle Offers

SERVICES

GrouponLivingSocial

Facebook DealsAmazon LocalGoogle Offers

TRAVEL

GrouponLivingSocial

FAMILY/GROUP

LivingSocial

EVENTS

Facebook DealsLivingSocial

SOCIAL SHARING

GrouponLivingSocial

Facebook DealsAmazon LocalGoogle Offers

REFERRALMONEY

Groupon

GROUP BUYING

Groupon

REFERRAL DISCOUNT

Facebook Deals

3 FRIENDSBUY=FREE

FREE

LivingSocial