Are you living social or getting your groupon?

23 Mar

What’s the latest trend to do online with your friends?

GET YOUR GROUPON!!!

Groupon began just over 2 years ago in November 2008 and in that short time, it has grown an empire. In just 16 short months, Groupon was estimated to be worth $1 million. Only second to YouTube which reached $1 million in just 12 months!

For anyone not familiar with Groupon’s business model, here’s my short synopsis- Each day there is a daily deal. A certain amount of people must agree to buy the deal before the deal is “tipped” and then you are able to buy it. So in other words a group of people all want the deal in order for anyone to buy the coupon. The deals began as coupons for local businesses but has expanded to feature national companies as well. Groupon is currently in over 500 markets in 44 countries worldwide.

You may wonder why a business would want to be featured on Groupon. The businesses featured usually have a rapid rise in customers from the sales of the Groupon usually resulting in hundreds to thousands of customers. 97% of businesses featured say they want to be featured again. Visit GrouponWorks to view some great videos about the impact of Groupon.

See the below graphic for a more detailed history of Groupon.

The Amazing Rise of Groupon
[Source: OnlineMBA.com]

Groupon created a new and unique concept of online marketing but their biggest downfall is that it is easily replicated. Groupon’s success has spurred a multitude of look-alike sites including one of their largest competitors, LivingSocial. Others include Urban Dealight, BuyWithMe.com, DoozyofaDeal.comTippr, TownFav.com,  LocalTwist and DealStork.com .

There are even specific topic group buying sites popping up. I found one last week that only features deals on gluten free food, Gluten Free Deals . (As someone who has to eat gluten free, I was really excited!!!)

Google recently offered Groupon $6 billion for a buyout which was turned down by Groupon. Smart decision? Google’s not giving up that easily. Google is now reportedly testing their own group coupon site called Google Offers. You can read more about it from Mashable who broke the news in January. With Google’s already massive following, brand recognition and vast resources, this could a powerful competition.

So what’s next?

The idea of collective buying has taken off.

Wal-Mart launched a facebook app late last year called CrowdSaver. CrowdSaver features a product from Wal-Mart and once a set number of fans “like” the product, the product will then drop in price for everyone. The product will be available at the CrowdSaver price until the item sells out online. Read more from the Chicago Tribune.

I think we’ll be seeing more of these spin-off type promotions due to the influence of Groupon. As a result of the connectivity of social media, it seems it’s no longer how a business advertises to their online audience but how to get the online audience to market to their friends and continue the cycle.

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Social Media and then some!

20 Mar

Welcome to my new blog all about emerging media and how it affects the way companies are changing their marketing strategies. To learn more about me visit the About page.

Most people think when you say emerging media it equals social media like facebook and twitter. But emerging media is much more than social media alone. It encompasses interactive banner advertisements, rss feeds, podcasts, advertisements in games, smartphone apps, widgets, social networking and more. These emerging techniques are truly changing not only the way marketing is handled but also the way we live our lives.

One part my life that has changed more than anything else would be the use of a phone. It used to be we used a phone to keep in touch with family or friends. Then the phone became the cell phone that we could keep in touch anywhere we wanted (given that you had service). Then became the popularity of text messaging and the cell phone then became the smart phone. And every few months the smart phones just keep getting smarter! We can now do practically everything on a smart phone but are no longer bound to a computer sitting in an office. Wherever you are, you can check your email, keep up on facebook statuses and tweets, book a hotel room, watch the weather report, and sometimes even make a phone call. 48% of Americans with facebook accounts check for updates when they wake up and 28% of them do it using a smart phone before even getting out of bed.

What else has changed?

Newspaper Advertising

2010 was the first year in which online advertising topped newspapers ads. It was also the first year that online newspaper readership was higher than the print edition’s readership. Read more about it from eMarketer.

Facebook

U.S. web users spent almost 10 percent of their total online time on facebook.

“For many online users, Facebook is to our era as revolutionary as the telephone was a century earlier.” -Jeffrey Rayport, Harvard Business Review

Cell Phone Uses

Cell phone usage for uses other than voice data applications has increased.

Cell Phone Uses 2010

What will be next?

Below is the chart of the predicted trends for emerging media in 2011.

Time Twitter will tell.

2011 Emerging Media Trends

Charts were found on  A billboard in the Woods , Pew Internet and eMarketer. Thanks!