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The Timely Death of the Daily Deal
    …and the birth or every day,
 everywhere, every way promotion.

                  Perry Evans
               CEO, Closely Inc.
              Local Social Summit
           London, November 9, 2011
The Daily Deal
                  2010

One deal per day, per metro area, emailed to
      you, with a group tipping point.
One Year Later
Many deals, various times, across locations via email & mobile.
  X        X X                 X       X
 One deal per day, per metro area, emailed to
       you, with a group tipping point.
Are we in a revolution?


Are Daily Deals the
center of your future       Pfft, no.
marketing spend?
Are we in a revolution?


Should you promote yourself
differently for the mobile    Of course.
social consumer?
Daily Deals represent one
[highly visible] element of
 the reinvention of direct
        marketing.

  and the path towards
   yield management.
Novelty vs. Novel?
Consumers:                            Businesses:
• Can finally “price shop” locally.   • Love the underlying concept.
• Showing need to be constantly       • Hate business model and lack
  re-acquired.                          of control.
• Consumer is empowered,              • The most desirable and
  no turning back.                      simplest consumer action.
Some Industry Shifts
•   Product Patterns
•   Distribution
•   Merchant Experience
•   Consumer Targeting
Product Patterns
• Stepping towards yield
  management
   – Time/date
   – Product type/packaging
• Return visits & loyalty
• Smarter, more contextual
  promotions
Distribution in Rapid Transition
• The Rise of Offer Networks
   – Google, Amazon, Yipit, LON, Tippr, …
   – Diminishing returns on consumer email

• Food Chain is in Formation
   – You Don’t Have to Win with the
     Consumer to Play

• Placement Expansion
   – Search, Mobile, Maps, Display
   – SMB web pages
Merchant Experience
• The Noise is Overwhelming
    – Revert to major brands and
      trusted relationships
    – Open to breakthrough products
• Merchant Tools Evolving Quickly
    – Redemption
    – Tracking & Analytics
• Everyday Promotion Dashboard
    – FB, Groupon Now, Twitter intro
      SMB to live publishing
Consumer Targeting
• Personalization
   – Filtering is critical
• Verticalization
   – New brands + commerce
     for known brands
• Integrate into search &
  mobile behavior
Industry Shakeout

• Failure of low value clones
• It’s not as easy as it seemed
   o Growing cost of email acquisition
   o Diminishing action rates
• Merchant loyalty
   o Single-product model challenged
Implications for Local Media
When Shopping Models Shift
HOTELS

•   1990
    – The Rack Rate
    – Reservations centered
    – Agents controlled promotion
•   2010
    –    Variable pricing
    –    Time, quantity, duration, auction
    –    Pre-purchased dominates
    –    Integral to purchase decision
    –    Direct-to-customer loyalty
Redrawing Promotion Distribution

Media & Commerce Channels   Campaigns: Scheduled + Live


    Organic Distribution    Promotion “SEO/API”

     Social Audience        Social Marketing


         Customer           Loyalty & Referral Marketing

          Merchant          Promotion Content & Dashboard
Redrawing Promotion Distribution

Media & Commerce Channels   If your business is here.

    Organic Distribution

     Social Audience
                            Playing here may be mission
         Customer           critical.

          Merchant
Babies can be unattractive, but…

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Local social summit nov 9 2011

  • 1. The Timely Death of the Daily Deal …and the birth or every day, everywhere, every way promotion. Perry Evans CEO, Closely Inc. Local Social Summit London, November 9, 2011
  • 2. The Daily Deal 2010 One deal per day, per metro area, emailed to you, with a group tipping point.
  • 3. One Year Later Many deals, various times, across locations via email & mobile. X X X X X One deal per day, per metro area, emailed to you, with a group tipping point.
  • 4. Are we in a revolution? Are Daily Deals the center of your future Pfft, no. marketing spend?
  • 5. Are we in a revolution? Should you promote yourself differently for the mobile Of course. social consumer?
  • 6. Daily Deals represent one [highly visible] element of the reinvention of direct marketing. and the path towards yield management.
  • 7. Novelty vs. Novel? Consumers: Businesses: • Can finally “price shop” locally. • Love the underlying concept. • Showing need to be constantly • Hate business model and lack re-acquired. of control. • Consumer is empowered, • The most desirable and no turning back. simplest consumer action.
  • 8. Some Industry Shifts • Product Patterns • Distribution • Merchant Experience • Consumer Targeting
  • 9. Product Patterns • Stepping towards yield management – Time/date – Product type/packaging • Return visits & loyalty • Smarter, more contextual promotions
  • 10. Distribution in Rapid Transition • The Rise of Offer Networks – Google, Amazon, Yipit, LON, Tippr, … – Diminishing returns on consumer email • Food Chain is in Formation – You Don’t Have to Win with the Consumer to Play • Placement Expansion – Search, Mobile, Maps, Display – SMB web pages
  • 11. Merchant Experience • The Noise is Overwhelming – Revert to major brands and trusted relationships – Open to breakthrough products • Merchant Tools Evolving Quickly – Redemption – Tracking & Analytics • Everyday Promotion Dashboard – FB, Groupon Now, Twitter intro SMB to live publishing
  • 12. Consumer Targeting • Personalization – Filtering is critical • Verticalization – New brands + commerce for known brands • Integrate into search & mobile behavior
  • 13. Industry Shakeout • Failure of low value clones • It’s not as easy as it seemed o Growing cost of email acquisition o Diminishing action rates • Merchant loyalty o Single-product model challenged
  • 15. When Shopping Models Shift HOTELS • 1990 – The Rack Rate – Reservations centered – Agents controlled promotion • 2010 – Variable pricing – Time, quantity, duration, auction – Pre-purchased dominates – Integral to purchase decision – Direct-to-customer loyalty
  • 16. Redrawing Promotion Distribution Media & Commerce Channels Campaigns: Scheduled + Live Organic Distribution Promotion “SEO/API” Social Audience Social Marketing Customer Loyalty & Referral Marketing Merchant Promotion Content & Dashboard
  • 17. Redrawing Promotion Distribution Media & Commerce Channels If your business is here. Organic Distribution Social Audience Playing here may be mission Customer critical. Merchant
  • 18. Babies can be unattractive, but…