Doing Offers Right<br />Jim Moran | @jdmoran<br />SMX East: Thursday, September 15<br />
Today<br />What’s the state of play?<br />Is the market sustainable?<br />Why should I care?<br />Who should I work with?<...
State of play<br />
New Multi-Billion Dollar Industry<br />
The Daily Deal Stack<br />Daily Deal Sites<br />MERCHANTS<br />CONSUMERS<br />Vertical Deal Sites<br />Publishers<br />Whi...
Sustainable?<br />
High Repeat Rate<br />43% of daily deal merchants in May had run at least one prior deal<br />
High Merchant Satisfaction<br />Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months...
Breakage Rate ≤20%<br />Recent data on Groupon is consistent: (i) breakage of 10% (TechCrunch, 8/14/10), and (ii) 20% rede...
Profitable at 19% Retention<br />Assumptions from industry research and Yipitphone survey of SMBs who have completed a Dai...
Daily Deal Consolidation<br />
Why should I care?<br />
It’s Big<br />$5+ Billion market that did not exist two years ago<br />
Bigger Than Local Advertising<br />14<br />
It’s The Future<br />Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 respon...
Best outlets?<br />
Industry Leaderboard<br />
Groupon vsLivingSocial<br />
Google<br />
Amazon<br />
Best Practices?<br />
Top Categories by Revenue Share<br />22<br />
Avg. Price Point by Category<br />23<br />
Deal Performance by Category<br />24<br />
Industry Revenue by Price Point<br />25<br />
Deal Performance by Price Point<br />26<br />
Optimize for Each Variable<br />Assumptions from industry research and Yipitphone survey of SMBs who have completed a Dail...
Thank you<br />
Thank You<br />Yipit.com/data<br />@YipitData<br />
Upcoming SlideShare
Loading in …5
×

SMX East: Doing Offers Right

752 views

Published on

Prese

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
752
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
60
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • 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
  • SMX East: Doing Offers Right

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

    ×