Everybody loves a deal, even if selling them is a tougher business than it might seem.
But if you're the world's largest digital purveyor of deals, how do you fend off competition and reach more consumers? If you're Groupon, you turn to the physical world.
On Monday, the company that made the 'daily deal' famous went public. Groupon's debut as a publicly-traded company was successful, despite the widespread criticism the company had received in the months leading up to its IPO.
Going public, of course, doesn't mean that Groupon has answered the serious questions about its business model and future prospects. And if moves by another player that entered the daily deals space is any indication, the company that turned daily deals into a billion-dollar market may have its work cut out for it.
For many merchants owners, daily deals services are very attractive. Their promise: lots of customers coming through the doors in a short period of time. And no up-front fees to boot.
The appeal of the daily deal has driven the growth of some of the fastest growing companies ever.
According to a report by BIA/Kelsey, in just a few short years, consumer
spending on 'daily deals' like those offered by Groupon and
LivingSocial could reach $6bn.
So it's no surprise that the concept has been commoditized and everyone
is jumping on the daily deal bandwagon. Take for, instance, major
publishers like the New York Times which is launching its own daily deal
service called TimesLimited.
Twitter, which for so long was criticized for its lack of a revenue model, is now firing on all cylinders as it looks to develop multiple sources of revenue. From Promoted Tweets to Promoted Trends, the company is no longer shy about trying to make a buck, and so far, Twitter users don't seem to mind.
One big reason: Twitter has done a pretty good job at making sure its ads aren't intrusive. And if it has its way, it might even make money while making Twitter users happier.