LivingSocial's Competition With Groupon Is Heating Up

In recent months, LivingSocial has quietly been turning up the heat in their ongoing battle with the dominant group-buying site, Groupon. While some signs suggest the gap has been widening slightly as Groupon’s growth continues to accelerate, LivingSocial has been pulling out all the stops, investing heavily in internet-wide promotions. Just today we stumbled across an advertisement on Evite that shows up once users complete their RSVP.

With just under $40 million raised in the past few months, LivingSocial is turning up the heat with the focus of becoming the leading deals site on the internet. Groupon isn’t going to give up the commanding position anytime soon though as both companies are investing heavily in new user acquisition. While I’ve always been a fan of the Groupon name, LivingSocial has an industry leading tech team.

LivingSocial was once the top development team on Facebook thanks to their insanely viral Pick 5 application, which was instantly duplicated by every other Facebook application developer around. While the company’s reach on Facebook has dropped since then, the company’s comprehensive knowledge of Facebook application engagement dynamics gives them an edge over competitors.

While the battle between LivingSocial and Groupon is still early on, it’s clear that both companies are taking this battle seriously and pouring in significant resources to become the dominant players.

AllFacebook Marketing Conference returns to San Francisco on June 28-29! Join us and get a how-to guide for marketing to Facebook’s 800 million users. A full agenda will be announced soon. Keep an eye on our event site for more information. Special early pricing is available for only $249 until this Wednesday, February 15, so register today.