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.
Groupon is adding competitive pressure by offering a customer loyalty program that rewards consumers for their purchased coupons. The company is hoping to reignite interest in its planned initial offering, which was announced in June — before the stock market volatility kicked into high gear.
A New Jersey technology company, icueTV, is teaming up with Groupon to show off a new form of interactive television that allows viewers to request more information about an advertiser.
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.
Often with the help of outside companies that provide software and support, broadcasters are finding that Groupon-like group buying deals and rewards programs are a valuable new source of revenue — a good way to bring in smaller, local businesses like massage therapists that may not be able to afford traditional on-air spot campaigns.
Groupon is ending a campaign that made its debut on Super Bowl Sunday, days after making changes in response to considerable criticism of the ads. The decision is a major setback for Groupon, the purveyor of online discount coupons, because the campaign represented its first national mainstream advertising.
Groupon may not need Google to grow. But it does need some good, old-fashioned advertising. In the coming weeks, expect to see the social e-commerce trailblazer make its foray onto TV, including pregame spots in the Feb. 6 broadcast of Super Bowl XLV.
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.