Posted by: Ryan Schoenefeld | February 5, 2011

The Competition for Online Social Deals

Competition between Groupon and LivingSocial has increasedCity Lights as the two vie for investor funding, Super Bowl ads and deals from retailers.

This approach is still relatively new and time may be the only feasible indication as to whether or not they linger for years to come. There is without a doubt an incentive for customers, but at the same time, it is hard to decipher if the discounts ultimately benefit the businesses and organizations that utilize their services.

I realize that more traffic might be generated for a struggling business venture, although they won’t be receiving as much capital for their products and services, depending on the nature of the particular business.

Even amidst the success of Groupon and LivingSocial, Google is currently trying to capitalize on the concept as well. They have recently introduced Google Offers, which is based on a similar mantra and offers individuals an opportunity to save money on particular goods and services.

However I wonder where Google Offers will fall into the equation and if they will eventually gain enough traction to compete with the other two substantial forces. Google seems to be in their infancy and I am interested to see if they will gain substantial momentum along the way.

Time will tell and I guess we can all stay tuned!

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