Quote:
Originally Posted by marketsmart
i believe FB has been caught also inflating their numbers..
and Groupon is not even close to the model of FB..
local companies are now copying Groupon and they are offering better deals in the smaller markets..
Groupon is fucked..
They will never turn a profit unless they cut their advertising spend to zero... 
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Groupon rose on the power of their PR. Great PR is never a foundation for a sustainable business model. How well they do in the future with everyone trying to take a piece, down to the smallest local level as you mentioned is definitely uncertain.
Typically, in the normal business world, no company/product can own more than 50% of any given market. Online however, a huge marketshare can evaporate in an afternoon.
Further, FB users are invested in FB. Their pics, their videos, their friends/family, their connections, their groups, their apps etc. FB ads are worth a lot because of the ability to target to the extent that you can. FB has a lot to offer that will hold up over time. Groupon has nothing to offer that 1,000,000 copycats aren't now offering or that can't offer with a 500.00 script/white label and the willingness to go business to business and sell... Groupon takes a huge share of the sales, demands the offer be at least 50% off (i think) etc. Which doesn't even make sense for most businesses unless the business is dying.