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DailyDeals

Daily Deals Trends and Updates

Feb
15

Daily Deals sites such as Groupon, LivingSocial and their international equivalents (KupiKupon in Russia, for example) have received a lot of press lately.  Article titles like “The three worst daily deal mistakes and how to avoid them” prove that, from the perspective of merchants and advertisers using the group-buying sites to gain business, a consensus has yet to be reached on their true value.

However, in favor of marketers everywhere, insights provided by Daily Deals Media show merchant deal satisfaction at the level of “extremely satisfied” rose 9% between July and December 2011.  Since average or less satisfaction ratings dropped, we can say that this vertical is still growing, albeit not quite as strong as it was one year ago, and merchants will continue to invest their marketing budgets in Groupon and its competitors.

At Affiliate Summit East 2012, I attended a session entitled “Effectively Monetizing Traffic with Daily Deals” which focused on new directions that sites like Groupon are taking to better meet their merchants’ needs, and what affiliate marketers can do to get the most out of this rather dynamic vertical.

 Session Attendees

  1. Scott Ginsberg, Director, Publisher Development, Commission Junction (Moderator)
  2. Peter Hamilton, Partner/CMO, HasOffers
  3. Carolyn Kmet, Director of Affiliate Marketing, Groupon.com
  4. Rafael Zelik, Marketing Director/Partner, affiliaXe Ltd

 

Trends of the moment

Mobile

Daily deals are being seen more and more on mobile devices and inside mobile apps.  The deals arena is definitely going towards mobile and geo targeting – Groupon, LivingSocial and others are good examples in how they offer creative that dynamically updates to show the most relevant ad to the consumer based on their location.

 

Personalization

Daily deal newsletters are getting more and more targeted and sophisticated.  If in the past we were all used to getting the same emails with exactly the same deals, that is now over.  Continuing the personalization trend directly to consumer inboxes, daily deals companies are starting to send deals newsletters based on your purchase history, favorite deals, and your shares and likes.

New verticals

When the daily deals trend started, (read my article introducing daily deals from last year), restaurant deals monopolized the offers.  One-by-one, merchants of different colors joined the ranks, widening the appeal for users and affiliates.

Travel

More and more daily deals are going into the travel arena, creating coupons for travel, starting with flights and up to complete trip packages.

Jewelry and Apparel

Jewelry and apparel are markets that haven’t been explored by the daily deals gold rushers, and we expect to see this vertical take hold in the near future.

What are the big daily deal sites looking for in their affiliates?

Daily deals sites make affiliates lives very easy by allowing easy feed and tracking options.  The session used Groupon as a case study, stating that they looking for innovation in promoting their brand.  They like new and proactive approaches and are willing to learn from their affiliates.

One caveat: It’s important to be as transparent as possible when promoting daily deal brands as they are very concerned with brand sentiment and user value.

If you are a publisher looking for daily deals offers to promote, click here to view all the Matomy Market offers in the Daily Deals category.
Nadav Trenter Moser

Nadav Trenter Moser

Sales & Business Development Manager at Matomy Market

 

Notes from The Daily Deals Summit

May
05

Here are some important notes from the Daily Deal Summit which was on April 6, 2011, Grand Hyatt NYC.

If “Daily Deal Summit” doesn’t ring a bell, you should check your RSS feeder.

All the industry leaders from both sides – deal sites side as well as media side – hooked up for a day of interesting panels & networking examining the present and future of the daily deal industry.

The leadership discussion, including representatives from LivingSocial, BuyWithMe and Gilt group discussed the state of the industry. Others discussed issues related to audience monetization, international daily deal market, mobile daily deals and more.

As this industry is growing all the time, with at least one new daily deal site emerging every day, I’m sure we will see Daily Deal Summit no # 2 and many other related summits.

An interesting panel I was hoping to see, but didn’t, was one discussing the promotion methods of daily deal sites.  Converting anonymous users to buying users is one of the most complex goals, occupying all deal site owners, hence deserving a considerable chunk of conference time.

Not yet working with Daily Deals campaigns?  Don’t know much about it?  Where have you been hiding?  Read this post to find out how to get started with the Daily Deals vertical.

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

Better Know a Vertical: Daily Deals

May
05

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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