Despite Groupon’s post-IPO troubles and repeated dismissals of the deals space as dead, local media companies are still turning to daily deals as a viable revenue source. “The deals space has leveled off,” says Patrick Dillon, president and co-founder of Deal Current. “Now, it’s going to start growing again.”
Deals providers are partnering with credit card company loyalty programs to better track and target the frequent customers at the core of their business. Media companies are also experimenting with deal malls, according to Part 2 of NetNewsCheck‘s special report on the deals industry, while analyst Gordon Borrell warns there’s one more competitor to watch out for: yellow pages/local search companies.
SeattleNow.com will offer the region’s shoppers daily deals, local coupon offers and discounts to area restaurants, as well as discounts to several national retailers.
While local legacy media companies are eager to jump on the daily deals bandwagon, many don’t have the resources (or the expertise) to set up and manage such programs. So they turn to “white label” companies that can provide the necessary software and back-office support. Most white labels also help sell or “source” the deal — that is, find local businesses willing to discount their products or services for a quick jolt to the top line. Here’s a sourcebook of some white labels that have made inroads with prominent legacy media companies.
Local broadcasters, newspapers and others are among a rapidly growing number of Groupon imitators battling for a piece of the multi-billion dollar daily deal market. For the most part, the local media companies are turning to white-label platform providers so that they can build their own brand in the marketplace and potentially make more money. In Part II of this special report tomorrow, NetNewsCheck will provide a listing of the leading white-label platforms now working with local media companies.
BIA/Kelsey research found that about 92% of businesses that offer discounts through daily deals sites landed “quality customers” who typically spend about 60% more than the deal’s initial value, and Web companies are rushing in to capitalize on the trend.