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Home / Blog / Advertising / Better Know a Vertical: Daily Deals

Better Know a Vertical: Daily Deals

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Hey affiliates, anyone heard of daily deals before?  Want to know how to market a daily deals offer?

I`m guessing you have. Moreover, I’m guessing that you were craving to see your new daily deal offer with your cup of coffee this morning as well.  For those who haven’t got a clue what I`m talking about, please check out Groupon.com, or any of its thousands of clones.

The win/win of the coupon site

Daily deal sites leverage the power of collective bargaining to provide incredible local deals that offer huge savings (50%-90%) for consumers while also promising spectacular sales numbers to participating merchants.

You should probably thank affiliate networks for hearing about daily deals in general, and for hearing about your local daily deal site as well.  The odds are that the last time you were astounded by a half-priced steak campaign for the nearby steak house it was brought to you by a Matomy Market display banner on your local news site, Google campaign, Facebook ad on your profile, or targeted email campaign.

Promoting Coupons and Daily Deals

Promoting daily deals, despite their popularity – is not your typical “walk in the park” (but we know that most affiliates are up to any challenge!).  Advertisers as well as publishers are continuously investing large amounts time and money in the daily deal site promotion quest.

We have summed up a few pointers to make your life a little easier, and maybe even spare you a couple of A/B tests:

Typical demographics that daily deal sites target

  1. Gender: mainly woman (60% – 70%)
  2. Ages: 20 – 35
  3. Location: Urban preferred

Campaign key success factors

Look and feel – Banners & Landing pages

On the Advertiser end

  1. Banner & landing page should match (in terms of theme)
  2. Call to action
  3. Short text and large image
  4. Dynamic (gif or flash), possibly even some sort of game
    • Top performing dynamic banners are ones that present the actual daily offer, in the banner. This is possible by placing a dynamic tag in the banner code, and importing real time feeds from the advertiser. This type has a high conversion rate due to the targeted traffic it generates – users who want the daily offer.
    • Example:
    • Good performing banners are ones that are dynamic in terms of look, but not necessarily synchronized with the actual daily deal. This type is usually very “call to action” and generates high CTR.

High performing banner example from Cupolis:

dailydealsbanner1

 

Short text and large image example from Living Social:

 

On the Publisher end

  1. Know to suit the banners to the chosen media channel in terms of size and look & feel.
  2. Know to suit the banners to the gender (based on the media channel)

Optimization

Publisher side

  1. Gender, age and location targeting capabilities.
  2. Media channels (ranked from top converting down)
  • SEM (Google, Bing, Yahoo and other)
  • Social media – Facebook and local social networks (ads and in-app ads)
  • Email marketing (with age, gender & location targeting capabilities)
  • Display – Banners and pops running on different sites

Advertiser side

  1. Should know what the lead/sale conversion rate they are looking for – typical conversion rates vary between 3%-6%.
  2. Should know how to calculate the lead/sale conversion rate in practice.
  3. Should be able to determine “user value” – the profit of a single user, based on past statistics, and based on that decide what they are willing to pay for each new user.

 

Performance based promoting methods

  1. CPL (typical flow): The advertiser pays after a user enters a valid email, chooses a city and clicks “submit”. Can come as Single opt in (SOI), or Double opt in (DOI)
  2. Hybrid: The advertiser pays a lower payout for a lead generated (CPL), and pays an additional payout when the user purchases a coupon (CPA). This is a good method as the publisher gets feedback regarding quality after a short period of time, and can optimize accordingly.
  3. CPA: The advertiser pays a fix/percentage payout for every user purchasing a coupon.

 

 

Nadav Trenter Moser

Nadav Trenter Moser

Sales & Business Development Manager at Matomy Market

For any further questions, feel free to contact me at – nadav.t@matomymarket.com

 

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