Daily Deal Case Study

Groupon Website
Groupon Facebook Ad
Client: Groupon
Brand: Groupon
Agency: Adparlor Inc., Toronto
Target: Canada, North America
Language: English (US)
Objectives: Awareness, Preference, Intent, Online Traffic, Sales, Recommendation, Direct Response
Media: Tv, Print, Online, Email

    Given the sheer number of deals that Groupon has live, it was looking for a way to get the right deal in front of the right person at the right time. AdParlor employed a very technical and scalable approach to achieve this. We integrated with Groupon's daily deal API to pull deal details as they went live at midnight in the local time zone of each city. As a new deal goes live, we instantly process the deal information and create a new set of Facebook Ads. We map the category of the deal itself to specific interests in Facebook to make sure the deal will be relevant to the person it is presented to.

    Creatives are pulled from the deal API and go through a machine learning process to determine which image works the best. Additionally, we generate multiple title/text combinations that meet the Facebook specifications while still reflecting the value of the deal. From the time a deal goes live in a city, we can have a Facebook Ad for the deal live in under one minute!

    This campaign is super scalable—and ongoing. At any given time, Groupon has roughly 100,000 unique active ads across numerous Facebook Ads accounts and acquiring thousands of new subscribers every day. While this effort is in conjunction with an aggressive Google AdWords and Display campaign, Facebook is one of Groupon's primary sources of user acquisition.

    In addition to creating these ads in real time, we layered on top a set of cityspecific domain Sponsored Stories. Users who click on deals, and end up making a purchase, have a Sponsored Story appear in their News Feed, attracting their friends to also purchase the deal. Deals end up being shared at a very high volume manually as well as through domain Sponsored Stories, increasing Groupon's ROI from its ad spend.

    Finally—to complete the circle—Groupon increased its Page management efforts to engage in conversations with its deal buyers and their friends.

    Campaign Performance

    Facebook has been a tremendous success for Groupon through AdParlor—and it has scaled up to be one of the largest campaigns in Facebook history.

    The campaign has delivered TENS OF BILLIONS of Impressions, MILLIONS of new user sign-ups, and has produced a significant number of deals to be sold and enjoyed by an active and socially engaged Groupon user base.

    Credits - CEO: Hussein Fazal , AdParlor Inc | Director of Performance Marketing: Gareth Smith , AdParlor Inc. | CTO: Kristaps Ronka , AdParlor Inc. | VP of Marketing: Zac Goldberg , Groupon | Manager, Online Display: Cat Reading , Groupon