As I’m sure you’ve heard by now, Facebook is looking to shake up the social ecommerce industry with yesterday’s expansion of Deals, its location-aware rewards program. The company is expected to turn Deals into a serious rival to online coupon, collective purchasing and location-based daily deal sites like Groupon and LivingSocial.
We’ve learned that Groupon, in turn, has tapped a startup called AdParlor to exclusively manage their advertising spend on Facebook. The group buying site will let AdParlor run “tens of thousands of ad variations” on the wildly popular social networking service.
In a way, Groupon will thus be increasing Facebook’s revenue, which will enable the social network juggernaut to more effectively compete against Groupon. This, of course, is a very simplistic way to look at these things – the truth is that for Groupon, like many companies, Facebook could prove to be a phenomenal platform for massive user acquisition.
In essence, AdParlor will run all of Groupon ads on the right-hand column of Facebook through a wide variety of campaigns – from generic ads driving users to sign-up for daily emails to deal-specific advertising units with a focus on driving direct sales.
Through dynamic ad creation and bid optimization, AdParlor, which has official access to the Facebook Ads API, says it manages to purchase advertising on the social networking site more effectively than any other party.
AdParlor says it already works with the some of the largest advertisers on Facebook, including companies like Ubisoft and Playfirst, and currently manages over 15 billion monthly impressions.
Kristaps Ronka, chief technology officer at AdParlor, explains how the startup will try and help Groupon grow its business by advertising on Facebook:
“We have built a powerful layer of artificial intelligence connecting the Groupon API and the Facebook Ads API. This allows us to dynamically build effective creatives for every Groupon deal and then micro-target them to the users who would be most interested in them.”
Indeed, the integration with Groupon’s API allows AdParlor to instantly create and micro-target effective ads to Facebook users the minute a deal goes live.
AdParlor, an Adknowledge company is a leader in handling large Facebook and social advertising campaigns. Currently managing more than one billion impressions per day utilizing our proprietary technologies we create customized Facebook campaigns for our partners including dynamic ad creation and real time bid optimization. AdParlor provides both full and self-service platforms, providing Facebook advertising on a large scale for hundreds of clients including Groupon, L’Oreal, American Express, Coca Cola, LG, OMD, Mindshare and Starcom.
Groupon features a daily deal on the best stuff to do, see, eat, and buy in more than 565 cities around the world. By promising businesses a minimum number of customers, Groupon can offer deals that aren’t available elsewhere. Groupon brings buyers and sellers together in a fun and collaborative way that offers the consumer an unbeatable deal, and businesses a large number of new customers. To date, it has saved consumers more than $300 million and claims it...
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...