Advertising Via Groupon

GrouponLaunched in 2008, Groupon is an ever-growing company, having changed the world of online shopping. The company is a group-buying site offering daily deals, and has proven to be very popular amongst consumers. The site provides consumers with great discounts for restaurants, retail stores, spas, theaters, and much more.

With all the traffic the site generates, advertising via Groupon seems like a no-brainer right? Well, while people love discounts – especially when money is tight – businesses may not. Many businesses get into it as a way to advertise without a good understanding of what they want to accomplish by using it.

Like anything, Groupon has its ups and downs, so before you decide to promote your business using it, you might want to check these three pros and cons out first…


1) It advertises your business

If getting your business’s name out there is what you’re after – especially if you’re a new business – a Groupon promotion can be an excellent way to do it. And not only can you share your business’s existence, but you can entice potential customers to try your goods as well. Which leads us to our next point.

2) It attracts new customers

You can reach new customers be appealing to those who are looking for inexpensive deals. Using Groupon, you get to charge lower prices to new customers. The idea is that they are going to like it so much that they will come back and buy from you again (and at full price).

3) It helps build customer relationships

Offering customers a way to save money can strengthen customer loyalty. If you play your advertising cards right, you can use Groupon to build long-term relationships, as opposed to a customer visiting once and never coming back again.


1) It creates a lot of traffic

While traffic is typically a good thing, sometimes too much can have a negative effect. The question is: Can your business handle the traffic that a Groupon deal may bring? If not, you may find it a challenge to keep up with demand.

2) It attracts deal seekers

Since the Groupon customer base is made up of low-end bargain shoppers, some of the traffic you generate might not be willing to purchase beyond the value of the coupon. You may find new customers, but just ones that want to save a buck.

3) It is not always profitable

Groupon deals are not always profitable. In addition to the deal you are offering, like a half price service, Groupon is going to take their share of what you sell (50 percent). In the end, you may find you have done a lot of work, but for little reward.

Now that you know Groupon’s positives and negatives, keep this in mind: it’s all about what you want to accomplish as a business. Many businesses can benefit greatly from advertising through it, while for others there are better avenues to advertise.

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