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Trillion Dollar Industry | Deals 3D
 

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 Trillion Dollar Industry | Deals 3D Presentation Transcript

  • A Trillion Dollar Industry
    Jim Moran | @jdmoran | blog.yipit.com
    Deals 3D: Monday, July 18
  • Daily Deals TOday
  • The Daily Deal Stack
    Daily Deal Sites
    MERCHANTS
    CONSUMERS
    Vertical Deal Sites
    White Label
    Publishers
    Data
    Merchant Services
    Exchanges
    Aggregators
    Consumer Services
    Merchant Agencies
    SOON…
  • New Multi-Billion Dollar Industry
  • Industry Leaderboard
  • Sustainable?
  • High Repeat Rate
    43% of daily deal merchants in May had run at least one prior deal
  • Shifting Ad Spend
    Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
  • 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)
  • 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).
  • 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.
  • From billions To trillions
  • Much Larger Than Local Advertising
    13
  • Trillion Dollar Industry
    Increase Penetration
    • Global expansion
    • Demographic expansion
    • Channel Expansion
    % of Consumers
    Increase Share of Wallet
    • Reduce Friction: Credit Cards, mobile
    • Personalization
    • Expand Categories
    • More Merchants
    1%
    Daily Deals
    % of Total Spend
    1%
    14
  • One Scenario
  • How?
  • Daily Deals Today
    &
  • Beyond Email
    18
    >50% of clicks from Yipit’s now through web users
  • More Categories
    19
  • Not Just Discounts
    20
    ~ 1 in 4 offers
    aren’t “deals”
  • National Brands
    21
  • Beyond “Prepay”
    22
    Groupon Now!
    LivingSocial Instant
    ScoutMob
    BlackboardEats
  • Frictionless Redemption
    23
  • Who Will Win?
  • Google
  • Amazon
  • Everyone
    Daily Deal Sites
    MERCHANTS
    CONSUMERS
    Vertical Deal Sites
    White Label
    Publishers
    Data
    Merchant Services
    Exchanges
    Aggregators
    Consumer Services
    Merchant Agencies
    SOON…
  • About Yipit
  • Data Product Overview
    Industry-wide Reach
    • Tracking 500+ Competitors across all major North American markets
    Comprehensive Deal Database
    • 100,000+ historical deals
    • 20,000+ new deals per month
    A Powerful and Versatile Tool
    • Source new, high-quality merchant leads
    • Analyze past offers to optimize merchandizing
    • Track performance of competitors
    30+ Current Partners
    29
  • Recognized Industry Expertise
    Speakers at Industry Conferences
    Expert Commentary
    Asked for Advice by Major Companies
    30
  • Thank you
  • Thank You
    blog.yipit.com
    @jdmoran