Originally Posted by DateDoc

Lets say you have a $10,000 advertising campaign to run. You can buy radio spots, ads in the paper but I doubt you could run a tv commercial for that amount. Now, instead of buying newspaper ads you put this money towards your Groupon campaign. Groupon emails a 100k people in your area (more or less depending where you live) letting them know about the deal and it is featured on the local Groupon site for the day.

Your $10,000 newspaper, radio, tv ad will not bring in as many people as a Groupon campaign will. Plus, the cost of advertising is not upfront with Groupon. In fact you get to pocket money right off the bat but that will get eaten up as the Groupons are used.