Media Companies and Daily Deals by Yipit


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Keynote presentation at the Daily Deal Summit by @vacanti on how media companies daily deal offerings are performing

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  • Google offers launched in June in PortlandExpanded to New York, San Francisco, Portland and Oakland in JulyPlanning to expand to 30 more cities
  • It’s still early but Google had a tough august Revenue and revenue per deal declined despite doing 30% more deals
  • Portland is Google Offers’s oldest market In its third month, it had a disastrous August For September, it clearly stepped up its game doing a deal with Fandango and promoting a deal on its home page
  • After a trial period, Amazon Local expanded to various cities in AugustAll Amazon deals say “Sold by LivingSocial”Based on our data, only 20% of deals on Amazon have previously appeared on LivingSocial
  • In Amazon Local’s first month, they are hanging in there doing almost 2.4x more revenue per deal than GooglePeople expect Amazon to sell them stuff and to do so at a great price
  • In Amazon Local’s first month, they are hanging in there doing almost 2.4x more revenue per deal than GooglePeople expect Amazon to sell them stuff and to do so at a great price
  • Yelp’s first deal generated $79K
  • Revenue per deal has been collapsing for YelpNo surprise that Yelp CEO said they would be focusing on higher quality deals by creating a dedicated sales force
  • After four flat months, Yelp had a very disappointing August
  • In the Top 30 markets, based on reported purchased counts, there’s no market where a daily deal site outperforms Groupon in terms of revenueThe closest is LivingSocial in Raleigh generating 70% of the revenue Groupon generates in that marketIn only 5 of the markets does someone generate more than 50% of the revenue Groupon generatesLivingSocial competes by trying to offer more deals like GrouponTravelZoo generates more revenue per deal than Groupon in certain markets but on far fewer deals
  • Groupon’s sole reason to exist is to send you deals. That’s all they do. Therefore, consumers largely trust that this is a good deal.Groupon will cite reviews from popular third-party sites
  • Why should we trust that Google knows what a good deal is?They should explain why they are offering this service. They should explain why this is a good deal based on all of the local data they collect?Why is this a good business? “The Story” section isn’t enough. Where are the reviews? Google collects reviews from all over the web, where are they?
  • Is this a good deal?People trust Amazon as a place to find well-priced items. That authority affects people but they still need to be dong a better job of explaining how they got this deal.Is this a good business?Not doing a good job at all of citing reviews.
  • Again, nothing on why this is a good deal?How did they get this deal?Is this a good business? Yelp has tremendous business authority but they need to emphasize it. This is the best X, see these 5 amazing reviews from our most respected reviewers, etc. The problem is that they can’t be pitching a specific business like this.
  • Is this a good deal?TravelZoo is the “the deal experts”. They’ve been sending deals to people since the 90’s. People trust TravelZoo to recommend a dealIs this a good business?Trickier but notice how TravelZoo puts “NY Mag-Endorsed Spa” front and center. They know how to get people to buy deals.
  • Media Companies and Daily Deals by Yipit

    1. 1. Daily Deal Summit | September 23, 2011<br />Media Companies and Daily Deals<br />
    2. 2. How is Google Offers Doing?<br />
    3. 3. Google Offers<br />3<br />
    4. 4. Tough August<br />4<br />Monthly Revenue<br />Revenue per Deal<br />(23%)<br />(36%)<br />
    5. 5. Google Portland<br />Portland Monthly Revenue<br />Portland Revenue per Deal<br />(32%)<br />(32%)<br />5<br />
    6. 6. How is amazon localDoing?<br />
    7. 7. Amazon Local<br />7<br />
    8. 8. August Revenue per Deal<br />
    9. 9. Los Angeles August Revenue<br />($in ‘000s)<br />
    10. 10. What HappenedTO YELP?<br />
    11. 11. Yelp<br />11<br />
    12. 12. Yelp Revenue per Deal<br />12<br />
    13. 13. Yelp Monthly Revenue<br />13<br />(52%)<br />
    14. 14. How are Other Media CompaniesDoing?<br />
    15. 15. Groupon Domination<br />15<br />Daily Deal August Performance by Market<br />Indexed to Groupon<br />Groupon Revenue<br />Parity Line<br />Deals Run (indexed to Groupon)<br />Revenue per Deal (indexed to Groupon)<br />
    16. 16. What can they do better?<br />
    17. 17. Authority<br />Good deal?<br />Good business?<br />
    18. 18. Google’s Authority?<br />
    19. 19. Amazon’s Authority?<br />
    20. 20. Yelp’s Authority?<br />
    21. 21. TravelZoo’s Authority?<br />
    22. 22. Other Factors<br />Did other people buy it?<br />Just for a limited time?<br />Is it exclusive?<br />Did their friends buy it?<br />