There’s still questions whether daily deals giants Groupon and Living Social can build profitable businesses off their huge customer bases. One thing that’s clear is there are profits in helping them get those customers.
In April, the companies combined for 3.6 billion ad impressions, with 2.4 billion coming via Living Social. That’s a marked increase from nine months ago, when the two showed under 1 billion ads, per ComScore.
That’s a testament to both the vibrancy of the deals space and its biggest challenge, according to Greg Sterling, an analyst with Sterling Market Intelligence.
“They’re spending so much money on acquisition that they’re in the red on an annual basis,” he said.
This is good news for the Web ad industry. Daily deals ads are typically done via ad exchanges and networks. The flood is actually leading to fewer of the teeth-whitening, belly fat and acai berry ads. But it’s a big business challenge for a company like Groupon, which has run over 19 billion ad impressions since last June, according to ComScore. Groupon is now gaining on Netfllix, ranking as the No. 7 Web advertiser.
-
Media Briefing: Publishers prepare for an earlier holiday shopping season
Gallery Media Group and Future are reworking their affiliate commerce content strategies this month to cover retailer's shopping events.
-
Massive political advertising clashes with holiday media buying, creating a ‘tsunami’ effect for Q4
This year, the fourth-quarter ad marketplace feels quite different, and for a number of reasons, some for the better and some not.
-
4A’s Marla Kaplowitz on 3 ways agencies can navigate the uncertain economy
The industry trade group is helping many agency members prepare their business for broader economic changes, from how to retain talent to honing their financial acumen.
-
SponsoredHow marketers are tailoring data-driven creative to engage audiences on CTV
Gabriela Maestre, vice president of creative solutions, Tremor International As the end of the year approaches and marketing teams look to finalize their 2023 budgets, many are wondering how to ensure their ads are set up for success in the months ahead, appealing to unique audiences whose media consumption habits continue to evolve. Advances in […]
-
How sportsbooks and publishers are rethinking the terms of content-based sponsorships
The economic slowdown is causing sportsbooks and publishers alike to reconsider their approaches to content-based customer acquisition campaigns.
-
A year after coming under Axel Springer’s control, Politico’s Europe and North American businesses are closer than ever
Politico is still realizing what a global brand might look like, but Politico EU's CRO Nicolas Sennegon is already pursuing an advertising business that extends across the pond.
