Daily Deal Landscape


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  • AngiesLsit now delivering coupons via email in 200 markets
  • Daily Deal Landscape

    1. 1. Daily Deal SpaceCompetitive Landscape<br />“It’s a large and quickly growing phenomenon. It’s so easy for advertisers to participate, they get immediate, measurable results. They get a check, and they get customers.”<br />Gordon Borrell, CEO Borrell<br />
    2. 2. Founded: 2008<br />Markets: 185<br />Revenue: $160M (December 2010)<br />Funding: $1.1B ($671M closed) <br />Members: 40M<br />Sales team: 1,500+<br />Comments: Groupon is the clear leader in the space. They focus on growth by offering compelling (greater than 50% off) offers to local businesses with no up front cost. Groupon takes a 50%+ share of the revenue that was generated by exposing the ad to their audience. Up to 30% of the offers are never redeemed. They have very poor client retention. Less than 70% of the deals are profitable for advertisers.<br />No up front cost. 21 deals a month. Huge audience. Lots of salespeople. <br />
    3. 3. Founded: 2007<br />Markets: 150<br />Revenue: $500M (projected 2011)<br />Funding: $265M<br />Members: 85M<br />Sales team:<br />Comments: LivingSocial started before Groupon but is the clear number two in the space. The concepts are virtually identical. LivingSocial recently closed an investment from Amazon and has also strengthened their executive team. They have also begun to focus heavily on travel with the acquisition of Urban Escapes. Living Social is rumored to be an acquisition target for Google since they lost out on Groupon. I don’t see this happening. <br />
    4. 4. Founded: 2004<br />Markets: 40<br />Revenue: $400M<br />Funding: IPO 5/10 (RLOC)<br />Clients: 20,000+ <br />Sales team: 1,000+<br />Comments: ReachLocal is going after the 3M local business owners who want to be online. They have offices is over 40 cities and sales people trained to sell to unsophisticated advertisers. The average client spends $1,800 a month with ReachLocal who then places ads on Google, Yahoo and others. The service includes ad copy and tracking. The weakness has been retention, they are losing a significant percentage of the client base each month. This is due to low ad spend levels, poor response rates & short term agreements. <br />
    5. 5. Founded: 2004<br />Markets: 185<br />Revenue: ~$10M<br />Funding: $56M<br />Members: 40M<br />Sales team: 1,500+<br />Comments: Yelp is a local reviews website covering almost 40 states. Yelp also launched in the UK in January 2009. Users write and read reviews about anything from their favorite hole in the wall restaurant to the worst downtown club. Additionally Yelp offers social networking features: the ability to add friends, groups, events, talk in forums or message contacts. The idea behind this is that users will trust their friend’s reviews more than others.  They are offering “check-in” deals to advertisers and growing fast.<br />
    6. 6. Google/AOL/Yahoo/Facebook<br />Google recently added 130 sales reps in AZ. They are pursuing a “feet on the street” strategy to capture local ad dollars.<br />AOL launched Patch this past year. It a “hyper-targeted” local news source supported by local ad sales. They invested $50M & expanded to 300 markets.<br />Yahoo launched Local Offers in a partnership with Groupon.<br />Facebook announced Deals rewarding customers with discounts when they check in. <br />Others to watch<br />There are over 200 online daily deal / coupon companies in the US. Here are a few of interest: <br /><ul><li>OfferMatic
    7. 7. Dealery
    8. 8. BuyWithMe
    9. 9. AngiesList
    10. 10. YP.com
    11. 11. Deal Current
    12. 12. Tippr
    13. 13. JellyFish
    14. 14. Woot
    15. 15. SocialBuy
    16. 16. Chitown Deals
    17. 17. MorgansDeals
    18. 18. ScoutMob
    19. 19. Dealster
    20. 20. RedPlum
    21. 21. EverSafe
    22. 22. DealOn
    23. 23. WhaleShark
    24. 24. The Deal Map
    25. 25. Yipit
    26. 26. Offur
    27. 27. GrabTheDeal
    28. 28. HomeRun
    29. 29. SnailDeal
    30. 30. Adgregate
    31. 31. Twongo</li></li></ul><li>Targeted demo, active and engaged potential customers<br />You must have all three to succeed in the daily deal space<br />Delivery vehicle, must be timely, engaging and relevant<br />Willing to discount with reasonable, desirable offers<br />
    32. 32. Tom Cuthbert<br />tom@maxdeal.com<br />