SMX East: Doing Offers Right
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  • Trends from the last two years, and extrapolating from those trends talking a look at what’s to come – how daily deals and what I’ll call now, Local Ecommerce will eventually be a major market, representing a sizable chunk of all local spending
  • One of my favorite slidesShaped up very similar to the ad tech landscape
  • When I talk about sustainability, I’m talking about sustainability for the entire industry. I’m not talking about issues highlighted in the Groupon S-1 – those issues highlighting possibly deteriorating business metrics in their oldest metros speed only to the ‘margin’ of these wildly profitable businesses – what I’m here to talk about today is that the the overall spend in this category will continue to grow at a rapid paceWhat can stop this? If merchants aren’t getting a satisfactory channel for acquisition of new customers
  • When I talk about sustainability, I’m talking about sustainability for the entire industry. I’m not talking about issues highlighted in the Groupon S-1 – those issues highlighting possibly deteriorating business metrics in their oldest metros speed only to the ‘margin’ of these wildly profitable businesses – what I’m here to talk about today is that the the overall spend in this category will continue to grow at a rapid paceWhat can stop this? If merchants aren’t getting a satisfactory channel for acquisition of new customers
  • Daily Deal industry grew 18% in May
  • Daily Deal industry grew 18% in May
  • Google, capturing intent, has an opportunity to push these deals when users do searches on Google and Google Maps.Think about a hardware store
  • Google, capturing intent, has an opportunity to push these deals when users do searches on Google and Google Maps

Transcript

  • 1. Doing Offers Right
    Jim Moran | @jdmoran
    SMX East: Thursday, September 15
  • 2. Today
    What’s the state of play?
    Is the market sustainable?
    Why should I care?
    Who should I work with?
    What do I do?
  • 3. State of play
  • 4. New Multi-Billion Dollar Industry
  • 5. The Daily Deal Stack
    Daily Deal Sites
    MERCHANTS
    CONSUMERS
    Vertical Deal Sites
    Publishers
    White Label
    Optimization
    Merchant Services
    Data
    Exchanges
    Aggregators
    Consumer Services
    Merchant Agencies
    SOON…
  • 6. Sustainable?
  • 7. High Repeat Rate
    43% of daily deal merchants in May had run at least one prior deal
  • 8. High Merchant Satisfaction
    Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.Groupon’sreports repeat interest at 97% (grouponworks.com)
  • 9. Breakage Rate ≤20%
    Recent data on Groupon is consistent: (i) breakage of 10% (TechCrunch, 8/14/10), and (ii) 20% redemption in month 1 and 15% redemption in month 12 (Chicago Tribune 8/16/10).
  • 10. Profitable at 19% Retention
    Assumptions from industry research and Yipitphone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
  • 11. Daily Deal Consolidation
  • 12. Why should I care?
  • 13. It’s Big
    $5+ Billion market that did not exist two years ago
  • 14. Bigger Than Local Advertising
    14
  • 15. It’s The Future
    Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
  • 16. Best outlets?
  • 17. Industry Leaderboard
  • 18. Groupon vsLivingSocial
  • 19. Google
  • 20. Amazon
  • 21. Best Practices?
  • 22. Top Categories by Revenue Share
    22
  • 23. Avg. Price Point by Category
    23
  • 24. Deal Performance by Category
    24
  • 25. Industry Revenue by Price Point
    25
  • 26. Deal Performance by Price Point
    26
  • 27. Optimize for Each Variable
    Assumptions from industry research and Yipitphone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
  • 28. Thank you
  • 29. Thank You
    Yipit.com/data
    @YipitData