Groupon's Commercial 'Exceedingly Effective': Ad Exec

Monday, 7 Feb 2011 | 3:25 PM ET

Groupon, the online coupon discounter, is getting a lot of criticism over a commercial that aired during Super Bowl XLVthat used Tibet and the rain forest as its subject matter.

"It's been exceedingly effective," Miles Nadal, chairman and CEO of one of the largest ad agencies in the world, MDC Partners, which owns Crispin Porter, the firm that made the Groupon commercial, told CNBC on Monday.

The Ad That May Have Changed Everything
A Doritos ad created for $500 by a non-ad person was at the top of the USA Today Ad Meter, but an ad for Groupon that used Tibet as its subject matter angered a lot of people. Still the ad was effective, says its creator, Miles Nadal, of MDC Partners.

"They have over 50,000 new customers that have come on board since the ad ran, so its actually drawing the kind of business performance that we expected it to," Nadal said.

"You have to understand there is a difference between popularity and business effectiveness," Nadal said, adding, "strategically Groupon has always dealt with social issues from the very evolution of the business."

"We're happy to be part of the conversation," he added.

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