It’s a glass-half-empty, glass-half-full kind of thing.
On the one hand, there is a shakeout underway in the daily deals business. By some estimates, one-third of the almost 600 daily deals sites that were in business at the beginning of 2011 have since either been sold or shuttered. Facebook shut down its daily deals program last August after a four-month trial. As Facebook execs certainly should have known, there is value in getting in first and defining the terms. As much as consumers like to grouse about the daily deals emails that fill up their in-boxes every morning, it turns out that it is a model to which consumers have become accustomed. When Facebook tried to shoehorn deals into its social network, consumers were underwhelmed.
Meanwhile, Google’s run at the lucrative market has been a fairly plodding mix of acquisitions and city-by-city growth that certainly isn’t keeping Groupon execs awake nights.
On the other hand, while the lows may be getting lower for some deal providers, the highs are definitely higher for others. According to a report issued by deal aggregator Yipit, the number of deals offered in September increased 6 percent in August. And gross revenue from those deals jumped 12 percent.
Gross revenues for the industry’s second largest site, Living Social, increased a whopping 32 percent, largely because of a record-setting half-priced coupon for the Whole Foods grocery chain that it offered in the second week of September. One million coupons were sold, and the deals site acquired hundreds of thousands of new subscribers in the process. In fact, according to Yipit’s data, LivingSocial grew more than five times as quickly as Groupon in September, although it still earned less than half the gross revenue of Groupon.
AmazonLocal is providing another sign that the death of daily deals has been greatly exaggerated. The new service, which, by virtue of Amazon’s investment, is now inextricably intertwined with LivingSocial, is the number four site in revenue in North America, behind Groupon, LivingSocial and TravelZoo.
Dentsu’s latest ad report shows slowed growth, driven mostly by inflation
The good news in Dentsu's ad forecast is that there's still growth. The bad news: most of the growth is the result of inflation, while real ad pricing actually dropped a bit.
How chef influencer Tue Nguyen works with the BuzzFeed Creator Network
BuzzFeed's Creator Network has been valuable from an audience and production education standpoint, but Nguyen still drives most of her business on her own.
Dentsu’s new Web3 readiness tool shines light on the tech’s potential to complement AI
Dentsu's Innovation Initiative is launching a web3 readiness index next month — at a time when the industry is obsessed with AI. Could the two technologies actually make a good pair?
SponsoredHow agencies’ relationships with RMNs are continuing to evolve in 2023
Sponsored by Best Buy Ads As retail media networks proliferate, agencies are increasingly identifying RMNs as valuable opportunities for their brand clients as they seek quality audience data, meaningful reporting and insights, and authentic and engaging ad formats and creative. However, there are many options for them to work through as they select RMN partners. […]
Digiday+ Research deep dive: Publishers large and small put their resources into first-party data
Eighty-two percent of publishers overall say they're already using first-party data to prepare for the end of the third-party cookie, and nearly half are requiring users to register and integrating first-party data segments into DSPs – indicating that first-party data is the clear path forward for publishers heading into the post-cookie world.
Media Briefing: Why publishers hope chatbots will be the latest retention tool
Publishers hope the chatbots they are developing will be the latest retention tool to keep readers onsite and to get them to consume more content.