local social summit nov 9 2011
DESCRIPTION
A trends viewpoint on the evolution of the Daily Deals marketplace, presented as a keynote presentation at the Local Social Summit, London Nov 9, 2011TRANSCRIPT
The Timely Death of the Daily Deal
…and the birth or every day, everywhere, every way promotion.
Perry Evans
CEO, Closely Inc.
Local Social Summit
London, November 9, 2011
One deal per day, per metro area, emailed to you, with a group tipping point.
The Daily Deal 2010
One deal per day, per metro area, emailed to you, with a group tipping point.
Many deals, various times,
X X X
across locations
X X
via email & mobile.
One Year Later
Are we in a revolution?
Are Daily Deals the center of your future marketing spend?
Pfft, no.
Are we in a revolution?
Should you promote yourself
differently for the mobile
social consumer?
Of course.
Daily Deals represent one [highly visible] element of the reinvention of direct
marketing.
and the path towards yield management.
Novelty vs. Novel?
Consumers:
• Can finally “price shop” locally.
• Showing need to be constantly re-acquired.
• Consumer is empowered, no turning back.
Businesses:
• Love the underlying concept.
• Hate business model and lack of control.
• The most desirable and simplest consumer action.
Some Industry Shifts
• Product Patterns
• Distribution
• Merchant Experience
• Consumer Targeting
Product Patterns
• Stepping towards yield management– Time/date
– Product type/packaging
• Return visits & loyalty
• Smarter, more contextual promotions
Distribution in Rapid Transition
• The Rise of Offer Networks– Google, Amazon, Yipit, LON, Tippr, …
– Diminishing returns on consumer email
• Food Chain is in Formation– You Don’t Have to Win with the
Consumer to Play
• Placement Expansion– Search, Mobile, Maps, Display
– SMB web pages
Merchant Experience
• The Noise is Overwhelming
– Revert to major brands and trusted relationships
– Open to breakthrough products
• Merchant Tools Evolving Quickly– Redemption
– Tracking & Analytics
• Everyday Promotion Dashboard– FB, Groupon Now, Twitter intro
SMB to live publishing
Consumer Targeting
• Personalization– Filtering is critical
• Verticalization– New brands + commerce
for known brands
• Integrate into search & mobile behavior
Industry Shakeout
• Failure of low value clones• It’s not as easy as it seemed
o Growing cost of email acquisitiono Diminishing action rates
• Merchant loyaltyo Single-product model challenged
Implications for Local Media
When Shopping Models Shift
HOTELS
• 1990
– The Rack Rate
– Reservations centered
– Agents controlled promotion
• 2010
– Variable pricing
– Time, quantity, duration, auction
– Pre-purchased dominates
– Integral to purchase decision
– Direct-to-customer loyalty
Redrawing Promotion Distribution
Customer
Social Audience
Organic Distribution
Media & Commerce Channels
Merchant
Campaigns: Scheduled + Live
Promotion “SEO/API”
Social Marketing
Loyalty & Referral Marketing
Promotion Content & Dashboard
Redrawing Promotion Distribution
Customer
Social Audience
Organic Distribution
Media & Commerce Channels
Merchant
If your business is here.
Playing here may be mission critical.
Babies can be unattractive, but…