Posts tagged with ‘groupon’
As Groupon nears its IPO, its customer acquisition costs are rising, both its margins and number of actual Groupons sold per deal are falling, and Google, Facebook and Microsoft are looking to get into the space.
So too newspapers as they hope to leverage the deep relationships within the local communities they serve. For example, today Boston.com (the Web site for the Boston Globe) announced a very Groupony daily deals site called (drumroll) Boston Deals.
Business Insider suggests all this is the way it should be and is bullish on the company’s IPO. It is, after all, history’s fastest growing company.
Me? Sounds like a very short stick will be in someone’s hands when all this plays out.
The “Top 6” local online companies in ad revenue have abundant local content — but none of it is news. Instead, the ads and associated shopping information are the content.
This confirms a thesis both my State of the Media colleagues and Borrell have advanced for some years — that many Internet users looking for a product or service have no interest in accompanying news content. The ads are, in effect, “unbundled” from news…
…Legacy news sites, including Gannett, New York Times, McClatchy, Tribune, Hearst and The Washington Post, appear further down in his Top 20 listing.
Of particular note, Borrell writes, are Autotrader.com and Groupon. “In 44 of more than 200 markets we track, Groupon or Autotrader.com generates more revenue than the largest local newspaper, TV or radio online operation in that market.”
Groupon, the two-year-old coupon company that’s planning an IPO that would value it at $25 billion, is getting some competition from a familiar source: newspapers.
As AdAge points out, Groupon’s 2010 revenue of $760 million is one-quarter of the entire US newspaper’s online revenue. No wonder news folk want in.
While it is not yet nearly enough to stop the steady bleed in print ad dollars, media companies are seeing their own Groupon-style deals bring in new revenue. Better yet, the revenue is often from entirely new customers. The San Diego Union-Tribune is now making more money in deals than in interactive advertising. That’s more revenue than LivingSocial in San Diego, said Mike Hodges, Union-Tribune’s VP-interactive. “We’re not up to the Groupon standards but we’re starting to cut into their market share as well,” he added.
The New York Times launched its first daily deal, called TimesLimited, last week. Hearst will launch about 70 deals properties in the next month. And McClatchy, which first partnered with Groupon to provide deals to its web readership, will be rolling out its own in April.
Newspapers were caught flatfooted when Craigslist disrupted their lucrative classifieds business. While a little behind in the local coupon game they do have one significant advantage as they enter it: deep relationships within local markets where they publish.
Time will tell if they know how to leverage it or if it will be another opportunity that passes them by.
The singularity draws nearer as two of the Web’s hottest trends—location-based services and hyperlocal content, merge, with a new tieup between Foursquare and Examiner.com.
In essence, Examiner’s 68,000 contributors, known as “Examiners,” will provide reviews and recommendations on nearby venues, restaurants, events, businesses and landmarks that will surface within the Foursquare mobile app when users following Examiner.com check in. Local tips will also be added when non-followers check-in nearby.
While content farms like Examiner.com flood the Internet with keyword optimized stories of variable quality, Foursquare has been pegged as an acquisition target for group deals sites like Groupon, which could then offer users targeted deals based on their location.
With a staff of more than 100 full time writers, daily deals site Groupon is significantly larger than many daily newspapers.
The ability to write engaging and witty prose is obviously something that comes in handy in traditional journalism as well as Groupon-style copywriting. But does that mean we should celebrate the fact that aspiring journalists are taking jobs at Groupon instead of doing journalism?
Well, who is hiring?