Tying Digital OOH To Daily Deals
January 19, 2012 by Dave Haynes
Daily Deal Media, which covers the daily deal industry populated by companies like Groupon and Living Social, has released an annual industry outlook and year-in-review report with some interesting insights that would be useful to Digital OOH networks that partner these kinds of companies.
Among the key findings covered within the report:
- The attrition rate is very high, so choose your partners carefully: The total number of deal publishers dropped 7.61 percent in the last 6 months of 2011. The world has 798 fewer deal sites due to consolidation and startups closing up their virtual shops. Asia saw the largest drop, with 1,348 daily deal sites exiting the industry.
- Merchants are generally happy with the results: Only 16.5 percent of all merchants were dissatisfied with their daily deal campaign, and 35 percent of companies reported their deal offering was profitable. Merchants indicating overall satisfaction in their deal programs rose 17 percent between June and December 2011.
- This is a glance medium: Triton Digital polled 60,000 consumers and found 39 percent had never subscribed to a deal program. Of those who do subscribe to at least one site, 28.4 percent glance at a deal to decide on their interest; 19.6 percent read the entire deal email; and 10.2 percent subscribe but consider deals spam and delete them.
The last one is interesting to me, as hyperlocal networks would seem a great platform for daily deals players to drive message frequency on offers that research confirms people just glance at in emails (so with emails, you get one chance and that’s it, but multiple impression opportunities in a Digital OOH environment).
The other opportunity for networks is new revenue. Through tracking, networks like RMG Networks are getting commissions from deals activated at premises where daily deal partner spots run (Groupon is a prime partner).