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Local Business Marketing: Daily Deals Up; Facebook Ads Slowing

December 13, 2011

Group deals are gaining popularity among local businesses: 12% of surveyed local merchants say they have offered a group-deal promotion, up 33% (3 percentage points)(PPs) from the 9% who said so in June 2011, according to the seventh annual MerchantCircle Confidence Index. 

Meanwhile, the adoption rate of Facebook Ads has slowed: 23% of local merchants now say they have used Facebook Ads, up just 5% (1 PP) from the 22% who said so six months earlier. 

Traditional marketing channels also remain popular among local merchants: 25% say they use print newspaper ads and 24% use direct mail 

Across other online channels, 18% of local merchants say they are buying pay-per-click search ads and 11% use online newspapers to promote their small businesses.

Below, additional findings from the seventh annual MerchantCircle Confidence Index, which tracks trends in sentiment among US local business and explores how they spend marketing dollars.

Both emerging platforms—group-deal services and Facebook Ads—are enjoying high favorability:

  • Among local merchants who have used group deals, 75% say they would do so again.
  • Among those who have used Facebook Ads, 62% they would do so again.

Customer Acquisition Top Benefit of Group Deals 

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