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Key insights from MerchantCircle's research include:
1. Facebook Ads are gaining popularity among local businesses.
• 66% of local merchants are using Facebook for marketing.
• 22% of local merchants have used Facebook Ads, and 65% would use Facebook Ads again.
• Top reasons to use again include ease of use (67%) and the ability to start and stop campaigns (65%).
2. Merchants are warming to group buying, but adoption is still slow.
• Just 9% of local merchants having offered a daily deal using a service like Groupon or LivingSocial.
• While three months ago, only 50% of merchants who had tried offering a group deal said they would do so again, 77% now say they would be willing to offer another daily deal.
• Top reasons for offering another deal include effectiveness in customer acquisition (58%), favorable deal structure (30%) and profitability of the deal (24%).
• Among those who wouldn't offer another daily deal, 42% said that it was not effective in customer acquisition, 25% said it was too costly and 24% said they lost money.
3. Small business familiarity with Facebook and Google may help them win market share from Groupon in daily deals market.
• 52% cited familiarity with Facebook and Google as a reason they might choose Facebook Deals or Google Offers over competitive daily deal offerings.
• Other reasons for choosing Facebook Deals include bigger audience size (26%) and better local targeting (21%).
• Those more likely to use Google Offers cited Google's bigger audience size (42%) and Google's brand reputation (34%) as top reasons for preferring Google.
4. Relevant Charts:
Adoption and repeat usage of Facebook Ads
Perception of Facebook Ads amongst users
Adoption and repeat usage of daily deals sites
Perception of Daily Deals sites amongst users