Deal Sites

Everyone has heard of the deal sites like Groupon and Living Social. These sites have everything to do with digital marketing because all of their marketing is done via website, e-mail or phone application. The deal sites are also connected to the travel industry because some people travel to use the deals and some of the deals are vacations or getaways.

I found an article from the Associated Press that demonstrates just how successful this form of digital marketing really is. The article starts off by revealing how fast the deal sites are growing and they are growing at such a fast pace that their offices have not been able to keep up.

“In just three years, the business model has changed local advertising, delivering faster results than other marketing methods. Store owners get immediate revenue and can see exactly how many customers an offer brings in.”

This form of marketing creates an immediate effect on shopping. Companies advertise the deals and the customers flock to buy. This is a new form of commerce that changed the way companies market their products.

The deal sites have more than doubled and have expected to generate $2.7 billion in revenue this year and it is said that the daily market could reach $4 billion by 2015.

Social networking sites are hopping on board with the deals and so have other shopper sites. Everyone is out to grab a piece of this new marketing method. There are two different types of deal sites, group buying sites and flash sale sites. The group buying sites are the ones like Groupon and Living Social that partner with local businesses for special offer. Flash sale sites like Ruelala and Gilt, host limited-time sales for members only.

Some merchants are so quick to create a deal that they end up getting burned. The deal takes too much from the company and the consumers make out with an even better deal than they thought. This tool has also created awareness for customers. It allows customers to find companies that they never could have before.

I personally have used Groupon and can honestly say that this form of digital marketing is remarkable. I see deal sites staying for a long time. I think that this is a form of digital marketing that has just started and over time will develop into something bigger than we can even imagine. Maybe even paper coupons and advertisements will be eliminated all because of this type of marketing.

http://www.google.com/hostednews/ap/article/ALeqM5i6_d0K1kZvj0ndrYvZgULNtZP1Lw?docId=9cd3fe4949cc49a382221d936ce9a1e8