Is Groupon Girding For Facebook Ad Battle?

As Facebook expands its Deals service and prepares to promote it in the news feed, Groupon is planning its own Facebook advertising strategy, giving management of all spending on those ads to AdParlor.

As Facebook expands its Deals service and prepares to promote it in the news feed, Groupon is planning its own Facebook advertising strategy, giving management of all spending on those ads to AdParlor.

AdParlor’s Chief Executive Officer Hussein Fazal, confirmed the arrangement in an email, “Working with us has allowed Groupon to buy advertising much more effectively on Facebook. I do not know much about how this reflects on their strategy against Facebook Deals. Also, unfortunately I cannot comment about present or future ad spend on Facebook.”

While this advertising campaign would conveniently position more Groupon messages in the same window that Deals promotions appear, the optimized Facebook ad spending effectively puts more money into Deals, as TechCrunch first pointed out.

AdParlor specializes in optimizing Facebook advertising campaigns, and claims to be one of the largest companies in that space. In December, AdParlor was managing more than 10 billion impressions per month on Facebook, using a service built around Facebook’s official advertising application programming interface.

“We have built a powerful layer of artificial intelligence connecting the Groupon API and the Facebook Ads API,” AdParlor’s Chief Technology Officer, Kristaps Ronka, told TechCrunch. “This allows us to dynamically build effective creatives for every Groupon deal and then micro-target them to the users who would be most interested in them.”

Increased competition among the providers of group discounts ultimately benefits consumers, who might enjoy a greater number of deals on a wider array of products and services.

What do you think about how Facebook Deals and Groupon might jockey for position?