Daily Deal Marketing: The Rise and Fall of Groupon?

August 30, 2011 § 3 Comments

There is some talk about Groupon fatigue so I thought this new survey among new media professionals about daily deal usage was particularly interesting.

While more than 90% of new media professionals subscribe to a daily deal or coupon service, only 22.4% think the daily deals will be important to the future success of their business, or their clients’ business.

The survey, fielded by Digicareers, was conducted among 450 new media professionals this summer and shows that new media professionals are more likely to subscribe to Groupon (87.3%) and Living Social (71.4%).  However,  the respondents felt that only 15% of the offers they received were of interest or relevant to them.  They reported participating in an average of 7.6 deals, or one every two months.

Eighty-six percent  do not use the deal sites for their own or client marketing.  Reasons for not using the deal sites for marketing included  the deal format not applicable to their business, deals do not reach their target audience, the benefit to their business is in question and the deals might tarnish their brand.

However, daily deals are viewed as complementary to other marketing activities such as online marketing, emails, print  and search engine marketing.

Why all this negativity?  I think it reflects the over saturation in the category, the importance of matching the deal to the business and customer, unattractive revenue sharing agreements and the varied results to retailers.  I think there are some niche daily deals that provide greater relevance and value to consumers.

We are seeing the daily deal gold rush coming to an end.  Groupon has seen traffic tumble some 50% this summer, Facebook left the deal business and Yelp is slowing getting out of the daily deal business.

 

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§ 3 Responses to Daily Deal Marketing: The Rise and Fall of Groupon?

  • Jerry says:

    I just talked to someone in the industry and businesses are signing up more than ever. Maybe, small business owners have done a better job about educating themselves about daily deal marketing. While, it is not a long-term marketing strategy, it can bring in fantastic results to the right business with proper planning and execution.

  • Pat Stewart Cipolla says:

    I am a small business owner, having just celebrated my 25th year in business. Over the years I have tried many forms of advertising, but Groupon is not for me. While I do see the relevancy for some, it doesn’t fit with my overall business plan. I’ll be interested to see the new daily deal info.

    Nice to see you Jamie. It’s been a long time since we graduated from high school. So happy to catch up with you again.

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