Groupon - Tag Archive

Daily Deal Market Ripe For Consolidation

2 Replies Angeline

According to Yipit, there are 384 daily deal websites operating in North America that it knows about. This number is almost certainly far higher once you consider all the smaller sites that are not able to run deals each and every day.

So is the market too saturated? Is the industry doomed to fail because there are too many competitors competing for an ever shrinking supply of customers?

In 1876 Alexander Graham Bell demonstrated the telephone and one of the biggest communications companies of the time immediately dismissed it with the famous quote:

“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”

That company was Western Union and the lack of foresight for this new technology meant they were never able to compete in the profitable telecommunications industry – an industry which they had previously dominated with their telegram service.

Between 1894 and 1904 over six thousand telephone companies went in to business and from there mergers, acquisitions and closures happened to consolidate the industry to just a handful of companies today.

In 1939 there were 132 railroads in America, today that number is just seven as mergers, acquisitions and closures meant huge consolidation in that industry.

An early 1900's American train

The sort of train that powered America in the early 1900’s

In 2005 there were a huge number of social networks available, Myspace, Orkut, Bebo, Friendster and Classmates to name but a few. Today? We have one site, Facebook as the market consolidated.

In 2007 there was just one daily deal website worth mentioning which was Woot, a hugely popular and profitable website that continues to grow and increase its revenues. After the launch of Groupon it spawned off thousands of clones around the world, over 400 of them in American alone.

Since 2009 there have been 72 acquisitions in the daily deal industry, 44 coming in the last 6 months alone. Groupon have gone for an expansion by acquisition business model with at least 8 buys under its belt, Google too is eyeing up the industry with several acquisitions in the daily deal market to expand its Google Offers programme.

There are plenty of other acquisitions too, LivingSocial have bought at least seven daily deal sites and BuyWithMe have purchased 6 daily deal sites before they too have been purchased.

So just like other new inventions and markets spawned hundreds of clones, it might look like the daily deal market is in decline as the number of sites decreases but there is still a very healthy merger and acquisition process taking place as the deal market looks to consolidate and become profitable.

How to start a career in social media

19 Replies Techscott

Social media has turned into a multi-billion dollar industry and opportunities to build a career around it are becoming increasingly common.

If you’re looking to start a career in the competitive world of social media and digital marketing, setting up a blog is a great place to start.

A blog not only allows you to express your personality and offer your opinions, but also gives future employers an insight into your knowledge, skills and experience. Pick a subject that you are passionate about and blog regularly to attract readers and establish your credibility. Aim to be a unique voice in the ‘blogosphere’.

There are a variety of free online services available that can help you with the technology side of setting up a blog. Then it’s a case of attracting followers by creating interesting content, updating it regularly and promoting it through other social networks such as YouTube, Facebook and Twitter.

Twitter's LogoPursuing a career in social media however is not just about knowing how to send a tweet, post a blog or set up a Facebook page. At the end of the day all businesses are looking at the impact social media has on their customer relations, business strategy, marketing and product positioning.

Demonstrate that you are serious by enrolling in a diploma in digital marketing and social media such as the one offered by the University of Middlesex. The postgraduate course combines theory and marketing practices to teach students how social media is contributing to entrepreneurship and innovation in modern businesses. Students attend guest lectures by professionals from some of the major organisations in web and social media including Google, Twitter and Groupon.

To have a competitive edge in social media, keep up to date with the latest developments. Understand the importance of monitoring, evaluation and analytics. You need to be familiar with the main social media sites but also the less popular ones as well which may have the advantage of providing a more targeted audience for the services or products you are promoting. You need to be able to spot trends and differentiate between up and coming sites and ones that won’t last the distance.

More than likely when you enter a career in social media you will be expected to be a good all-rounder and take responsibility for all areas of digital marketing. Job roles include social media officer, digital marketing manager or even director of social media. However larger organisations may allow you to specialise, so you could find yourself with a job title such as blog editor, analytics manager, designer, social media developer or content manager.