The deal will enable Media General to offer exclusive daily advertiser deals under the company’s local media brand names and powered by Groupon. This week, the Richmond Times-Dispatch became the company’s first media platform to offer the service through its website. Media General plans to launch the service in six additional markets by the end of the year.
Media General’s locally branded deal in the Richmond market is called the “Richmond Daily Deal.” Consumers can subscribe on www.timesdispatch.com to receive an e-mail alert with the details of each daily deal. Deals also are shared on the newspaper’s Facebook page and Twitter feed. Groupon-powered deals require a minimum number of redemptions for a deal to become active, which encourages consumers to share the promotion with their contacts via e-mail or social media, further heightening awareness of the advertiser’s offer. Groupon also provides daily deals and discounts under its own name in more than 200 markets around the world.
Marshall Morton, Media General CEO, said advertisers like this new form of promotion because they pay only when consumers redeem their offer: “Consumer redemption also provides retailers with valuable local foot traffic. For Media General, offering deeply discounted buying opportunities is another way to attract audience to our local media websites and create a new revenue stream.”
Under the partnership, Groupon sales representatives negotiate the deals with local advertisers. Groupon also produces the creative for each daily promotion and Media General distributes the e-mail alerts to its subscribers who have signed up to receive them.
Media General also operates Dealtaker.com, a fast-growing coupon and shopping website, which partners with over 2,000 retailers and features discounts on 15 million products and services from national retailers. Media General is compensated as a percentage of actual sales transactions. In Tampa, the company’s website www.tbo.com offers its own version of a “Daily Deal” that has operated since June, targeting local restaurants, retailers, services and events. Tampa’s program also shares revenues with advertisers based on consumer redemptions of an offer.