'Net Features : livingsocial

Groupon Facing Stiff Competition

Michael Garrity — Tue, 02 Aug 2011 21:00:00 GMT

E-commerce is a rough game, and that is a lesson that the Chicago-based daily deals website Groupon is learning first hand. Over the last two days, they've seen two of their primary competitors in the daily deals business partner with Internet powerhouses Google and Amazon, respectively.

The first big bombshell dropped on August 1, when Google announced that they had acquired Dealmap, a site that compiles local offers and then displays them for users on a Google-powered map. It's safe to assume, then, that this agreement will lead to deals being blended with the traditional Google Maps site in the near future. As many have noted, Google have a number of location services at the moment, but none of them really sync up to create a cohesive experience for users. The acquisition of Dealmap should help to expand on Google Offers, the company's current daily deal site, as they continue to expand their mobile and social platforms.

Interestingly, just last year Groupon rejected a $6 billion acquisition deal from Google.

It is also important to note that Groupon offers are actually among the many deals displayed on Dealmap.

As if that wasn't enough, just one day later Amazon came out with an announcement about Amazon Local, their own venture into the world of daily deals. And to add insult to injury, Amazon Local's initial rollout will take place in Groupon's hometown of Chicago.

LivingSocial, Groupon's closest competitor, has signed on to be the sales force behind merchant partnerships with the service. Though Amazon plans to eventually hire its own sales force, at the beginning they will outsource sales to help quickly get the project off the ground.

In December 2010, Amazon invested $175 million into LivingSocial, so by enlisting them as its sales force, they will begin to see some of that investment come back to them.

While Groupon has thus far been successful in thwarting the attempts of smaller start ups like LivingSocial, Gilt City, and Zozi, they will likely have their hands full with the onslaught of these existing large companies with a huge Web presence. Companies like Google and Amazon (or AT&T and American Express, who also expressed interest in pursuing daily deals programs) will have to pay far less than start ups for user acquisition, as the users already exist; it just becomes a matter of extending an offers channel within the site's existing framework.

What does this mean for Groupon, or more importantly, for future retailers who use their service? Only time will really tell, but it's certainly something many people are going to want to keep an eye on in the near future.

LivingSocial Goes Global Overnight

Administrator — Mon, 27 Jun 2011 21:00:00 GMT

Daily deals site and Groupon competitor LivingSocial announced the acquisition of several regionally focused daily deals sites around the world.

Living Social acquired Ensogo, one of the leading daily deals sites in Thailand and the Phillipines, DealKeren, an Ensogo company based in Indonesia, and GoNabit, which was one of the first daily deals sites in the Middle East. Living Social also introduced Daily Deals in the Netherlands.

The acquisitions and launch bring the total of countries/regions LivingSocial operates in to 21 and spanning six of the seven continents. The growth seemingly mimics the rapid growth of LivingSocial’s primary competitor in Groupon.

"As with previous acquisitions, LivingSocial has again chosen to align with local companies that possess similar values and ways of doing business," said Tim O'Shaughnessy, CEO and co-founder, LivingSocial. "We are excited to enter the dynamic Asian market and our presence in the Middle East and the Netherlands further strengthens our strategic global efforts to bring LivingSocial values to members across the globe."

LivingSocial Users Younger, Richer, Smarter than Groupon Users

Mike Phillips — Wed, 27 Apr 2011 19:45:00 GMT

Want to reach the young, smart and affluent with your daily deal offering? Then use LivingSocial instead of Groupon.

According to a survey* by Nielsen Co., LivingSocial buyers are 49 percent more likely than the average American to earn at least $150,000 -- compared to 30 percent for Groupon. LivingSocial users are also more likely to be under 35 years old than Groupon's audience. Also, LivingSocial's users are smarter -- 46 percent of them attended or graduated college, compared with 39 percent for Groupon.

This is a pretty interesting study and could be quite useful. Based on this, an upscale restaurant (should they even offer a deal), might find a better target audience on LivingSocial instead of Groupon, for example. In all, depending on the product or service offered and the intended audience, businesses might find success with a little targeting.

Of course, both LivingSocial and Groupon have bigger things to worry about right now -- the 800 lb. gorilla known as Facebook Daily Deals.

*Nielsen surveyed a panel of 200,000 Internet users.

Google Scrambling for a Local Deals Site

Mike Phillips — Wed, 22 Dec 2010 17:08:00 GMT

Google, after Groupon famously shunned their advances -- and $6 billion -- is desperately seeking a local deals site, mostly for the local ad revenue it can provide. A New York Post insider is reporting that Google is in talks with two, smaller Groupon rivals. Of those mentioned are LivingSocial and BuyWithMe, a New York social shopping service.

Google has reason to be a bit unnerved lately. Not only did Groupon give them the Heisman but Groupon also recently announced the hiring of Jason Child, a former Amazon bigwig, as the new Groupon CFO. To some, this signals a major step forward and a possbile IPO. In addition, eBay recently launched their local shopping service, GiftsNearby, taking advantage of their flurry of acquisitions and seriously bolstering their standing in the social shopping world.

It seems that Google showed up to party late, and all that's left are a few cheese doodles and light beer.

Cashing In On Daily Deals -- Groupon, LivingSocial, Tippr

Linc Wonham — Wed, 15 Sep 2010 20:35:00 GMT

Daily deal sites, group buying sites and coupon sites are taking the Web by storm. It comes as no surprise that in an uncertain economy consumers are going to great lengths to save every penny they can. But the fever-pitch enthusiasm with which shoppers are devouring daily deals offered by sites such as Groupon has reached a level that few could have predicted.

Less than two years old and already valued at over $1 billion, Groupon owns the space with more than 40 percent of the overall traffic according to Experian. But the startup’s historic success has spawned an entire industry filled with competitors, aggregators, innovators and imitators. The final word on who stays and who goes is left to the users, who are knocking each other over to find new deals and make more transactions.

This kind of excitement and buying activity generally creates a rich affiliate environment, and the daily deals affiliate market is still developing. Below are five of the leading sites that pay affiliates for referring users to their daily deals and coupons:

Groupon
Daily deals are now distributed in more than 100 cities and can earn partners up to 20 percent commissions through the Commission Junction affiliate network. Affiliates can simply install geo-targeted widgets or smart links onto their sites. The company’s now famous Gap coupon, its first national deal, reached more than 800,000 sales and was going at a rate of 10 per second at one point.

LivingSocial
Widely referred to as Groupon’s closest competitor in the space, LivingSocial receives about 20 percent of the overall traffic from daily deal-seekers. Affiliate partners can choose from an assortment of links and banners provided by LivingSocial and have them customized to match the look and feel of their own pages, earning cash for every sale made from their site.

kgbDeals
The next two sites have been recognized recently for moving themselves ahead of the pack that has formed beneath Groupon and LivingSocial. Both are looking at about five percent of the total traffic in the space and have managed to engage users with their deal-making capabilities and affiliate partners with their earning abilities. KGB’s program is run through the Google Affiliate Network.

Tippr
Tippr provides a full range of services for its partners so as not to compromise the uniqueness of their own sites and content. From the technical to the creative to merchant coordination and payment processing, Tippr’s team does most of the work so its affiliates can run their businesses and websites.

Coupons.com
Coupons.com offers a daily deal on products and services from major brands and local businesses around the U.S. and has a network of thousands of affiliate marketers that can publish the actual coupons on their sites. The coupons are chosen to match the partner’s content, site design and geography, and a payout is earned for every coupon printed.

Groupon created the business model and started the trend in late 2008, and these are some of the companies having the most success with it today. Others worthy of a look for their own daily deals and subsequent affiliate offerings include OpenTable, Yelp, Travelzoo and Woot, now part of Amazon.