The Timely Death of the Daily Deal

…and the birth of 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…