Trillion Dollar Industry | Deals 3D

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  • I'm really excited to get the chance to talk to you guys about how Daily Deals are going from something you archive in your inbox to a transformation in Local Commerce. At Yipit and I think a lot of people here agree that the deals are just a catalyst to the seismic shift bringing local spending online.
  • 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
  • Daily Deal industry grew 18% in May
  • 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
  • - It’s sure as heck not going to look like it does today- The fact that we call them daily deals is an anachronism from the beginning of the industry
  • The biggest threat to Daily Deals is probably email fatigue – no individual company owns it so the consumers inbox is becoming a modern day tragedy of the commons
  • 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
  • One of my favorite slidesShaped up very similar to the ad tech landscape
  • Nobody pays closer attention to the daily deals/Groupon/LivingSocial industry than Vinicius Vacanti, CEO of daily deals aggregator Yipit.So when we saw that Facebook launched a Groupon clone called Deals last night, we made sure to get Vacanti on the phone this morning. Per usual, he enlightened us.Nick Carlson, Deputy Editor at BusinessInsider
  • Trillion Dollar Industry | Deals 3D

    1. 1. A Trillion Dollar Industry<br />Jim Moran | @jdmoran | blog.yipit.com<br />Deals 3D: Monday, July 18<br />
    2. 2. Daily Deals TOday<br />
    3. 3. The Daily Deal Stack<br />Daily Deal Sites<br />MERCHANTS<br />CONSUMERS<br />Vertical Deal Sites<br />White Label<br />Publishers<br />Data<br />Merchant Services<br />Exchanges<br />Aggregators<br />Consumer Services<br />Merchant Agencies<br />SOON…<br />
    4. 4. New Multi-Billion Dollar Industry<br />
    5. 5. Industry Leaderboard<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. Shifting Ad Spend<br />Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.<br />
    9. 9. 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 />
    10. 10. 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 />
    11. 11. 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 />
    12. 12. From billions To trillions<br />
    13. 13. Much Larger Than Local Advertising<br />13<br />
    14. 14. Trillion Dollar Industry<br />Increase Penetration<br /><ul><li>Global expansion
    15. 15. Demographic expansion
    16. 16. Channel Expansion</li></ul>% of Consumers<br />Increase Share of Wallet<br /><ul><li>Reduce Friction: Credit Cards, mobile
    17. 17. Personalization
    18. 18. Expand Categories
    19. 19. More Merchants</li></ul>1%<br />Daily Deals<br />% of Total Spend<br />1%<br />14<br />
    20. 20. One Scenario<br />
    21. 21. How?<br />
    22. 22. Daily Deals Today<br />&<br />
    23. 23. Beyond Email<br />18<br />>50% of clicks from Yipit’s now through web users<br />
    24. 24. More Categories<br />19<br />
    25. 25. Not Just Discounts<br />20<br />~ 1 in 4 offers <br />aren’t “deals”<br />
    26. 26. National Brands<br />21<br />
    27. 27. Beyond “Prepay”<br />22<br />Groupon Now!<br />LivingSocial Instant<br />ScoutMob<br />BlackboardEats<br />
    28. 28. Frictionless Redemption<br />23<br />
    29. 29. Who Will Win?<br />
    30. 30. Google<br />
    31. 31. Amazon<br />
    32. 32. Everyone<br />Daily Deal Sites<br />MERCHANTS<br />CONSUMERS<br />Vertical Deal Sites<br />White Label<br />Publishers<br />Data<br />Merchant Services<br />Exchanges<br />Aggregators<br />Consumer Services<br />Merchant Agencies<br />SOON…<br />
    33. 33. About Yipit<br />
    34. 34. Data Product Overview<br />Industry-wide Reach<br /><ul><li>Tracking 500+ Competitors across all major North American markets</li></ul>Comprehensive Deal Database<br /><ul><li>100,000+ historical deals
    35. 35. 20,000+ new deals per month</li></ul>A Powerful and Versatile Tool <br /><ul><li>Source new, high-quality merchant leads
    36. 36. Analyze past offers to optimize merchandizing
    37. 37. Track performance of competitors</li></ul>30+ Current Partners<br />29<br />
    38. 38. Recognized Industry Expertise<br />Speakers at Industry Conferences<br />Expert Commentary<br />Asked for Advice by Major Companies<br />30<br />
    39. 39. Thank you<br />
    40. 40. Thank You<br />blog.yipit.com<br />@jdmoran<br />

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