In its second-largest acquisition, Amazon buys the company for $970 million.
The two daily deal sites are going head to head with advertisements.
The two leading daily deals sites, Groupon and LivingSocial, are both airing ads on Super Bowl Sunday.
But a new report suggests that the high cost of airing those ads during the big game won’t necessarily mean consumers will check out the companies.
A Groupon spokeswoman confirmed the ad but the company is staying mum regarding details. Meanwhile, LivingSocial publicized its Super Bowl ad with a press release this morning.
The 30-second LivingSocial spot is slated to air during the last commercial break before kick-off on Sunday. The pre-game spot tells the story of how one man's life changes as a result of his “deal addiction” with LivingSocial. The campaign was created by Martin Agency.
"The Big Game is as much about the commercials as it is about football and that makes it the perfect place to launch our TV campaign," says Camille Watson, vice president of marketing for LivingSocial. "Trial is our goal. Because we know that when consumers sign up for LivingSocial and see how easy it is, they fall in love with the value we provide for great local experiences."
LivingSocial also plans to run a spot during the Academy Awards presentation Feb. 27 to reach movie and celebrity enthusiasts who may not be interested in football.
"We're not betting the bulk of our marketing budget on one placement,” Watson says. “Consumers will see our true debut at the Academy Awards later this month."
Meanwhile, a recent poll by ChaCha, a mobile and web answering service, finds even the coolest ads don’t necessarily get viewers to check out a product or service.
82.9 % of respondents in a poll of 1,100 ChaCha users say they’re excited about the Super Bowl 2011 commercials. However, when asked, “If you see a really cool ad, does it make you check out the service or product?” 11.44% said yes, 38.71 % said no and 49.85% said sometimes.
"With a 30-second Super Bowl spot costing upwards of $3 million, these insights may cause some marketers to pause and second guess the return on their investment,” says Scott Jones, ChaCha CEO. "There is no doubt the Super Bowl's entertainment value can be effective at driving brand awareness but our modern digital world affords marketers numerous emerging ad mediums that can be integrated with TV spots to dramatically enhance campaign and ROI success.”