Last month Groupon signed an exclusive agreement with Toronto's AdParlor to have them manage their entire advertising spend on Facebook. Significant news for a Canadian startup with only 13 employees that was founded in 2008.
AdParlor will run “tens of thousands of ad variations” for Groupon on the right-hand column of Facebook through a variety of campaigns - generic ads driving users to sign-up for daily emails, as well as deal specific ads with a focus on driving sales.
TechCrunch pointed out that the deal seems a little odd as Groupon's advertising efforts will thus be increasing Facebook’s revenue, which will enable the social network juggernaut to more effectively compete against Groupon. And many believe that Facebook could be the only serious rival to Groupon.
The truth is that for Groupon, like many companies, Facebook could prove to be a phenomenal platform for massive user acquisition.
And if that's the case, maybe Groupon will be doing some shopping themselves with AdParlor on their list.