Groupon is a company that offers discounts and specials to restaurants and different activities in cities all over the nation through the power of numbers. If 100 people use Groupon then it can give the discounts to customers.
During this past Superbowl, Groupon aired controversial commercials that were meant to be funny but were found by some as offensive. The commercials highlighted different social, economic and environmental problems with celebrity spokespersons but then endorsed GroupOn by downplaying the problem with a great coupon they offer. The company has received a lot of negative press since the ads ran.
What the company failed to mention was that part of the profits from the ads was going to the different problems it highlighted in its commercials. This could have combated the negativity that now surrounds the campaign. The fact that Groupon was being generous and giving to various causes in need would have stifled a lot of the bad press.
The public relations team for Groupon should have made sure that the ads said something about part of the profits going to the causes. It could have humanized the company. Since the Superbowl is the most watched television program in the US and the ads were run during the game, the public relations practitioners had an opportune moment to engage all of their key publics. Had the ads been less offensive to some the company could have avoided the controversy. Groupon did use celebrities to endorse its services which would have gotten it attention regardless of the controversy.
Moving forward, Groupon should acknowledge the people who are upset with the ads and explain what it was thinking and what the point of the ads was supposed to be. Groupon should also express how it gave proceeds away.
What do you think Groupon should do to repair its image? Do you think the commercials are funny? Are they offensive?
Check out Groupopn’s commercial featuring Cuba Gooding Jr. about whales.
Things My PR Professor Said 
Talk about a PR nightmare! I had no idea that Groupon had partnered with these charitable organizations; it seems as if their key message was lost somewhere in the creative process. Did you see that Groupon officially pulled the ads today AND the CEO took personal responsibility? Time will tell what kind of impact this will have on its relationship with its customers.
Hi, Claire,
Yes, it is a nightmare! I did see that GroupOn took full responsibility for its actions and pulled the ads. I don’t know if this was enough to patch up the damage done. You’re right only time will tell. I would have explained what the company was thinking creatively with the ads before apologizing, but that’s just me.
Tina
As a textbook case, I think you could go ahead and call this a serious public relations error. In practice though, I really don’t think that this “backlash” will have a huge impact on Groupon’s business. You made a good point about including the donation information in the ad too, but I think that omission (perhaps intentional?) is just another reason why the company has been given so much coverage.
Maybe it just sounded more appealing to play the devil’s advocate here, but I went ahead and wrote my post about why these commercials will work for Groupon. It’s impossible to know for sure though. Like Claire said, “only time will tell.”