Group-based purchasing solutions are spreading to media websites like wildfire. With companies like GroupOn leading the way, the segment is now generating more than $1billion in yearly revenue. Deal Current, a private label daily deal software company, is now bringing to Triton clients “Daily Deals,” a suite of hosted social commerce solutions and sales force training tools for them to implement their own revenue-generating daily deal platform.
Through the agreement, Deal Current gains access to Triton’s 750+ media clients, so the critical mass will allow better pricing on many of the offerings. The company says it takes about 30 days to implement at the station.
Daily Deals brought to the table are offered up on air and online, and Triton says that the differentiator is that unlike email-based daily deals which require users to be opted-in, this system utilizes radio to promote deals, reaching a much larger audience.
The Daily Deals service is available under a revenue-share model with varying splits depending on the service level needs of the client. Some options allow the client and their advertiser to keep over 94% of revenue generated by consumers purchasing discounted local offers. Offers from other sources will be available to generate additional revenue for clients of the service.
Chris Bell, president of Triton’s Loyalty Division, tells RBR-TVBR the difference between Deal Current and competitor Groupon is now literally facilitating transactions from the consumer and are paying the advertiser. “We went from a model 15 years ago where the advertiiser paid to reach a certain audience size and demo, on a reach baisis. Then along came Google which said you only have to pay for specific actions from a consumer like a click or buy. Now we’ve gone through tje third twist, where the publisher is actually paying the advertiser. The thing to note one the Groupon model is they are paying the advertiser. When they pitch an advertiser, that’s what they lead with: ‘Local/traditional media bad, because you pay them and don’t know what you get other than some commercials that get broadcast. Groupon good, because you don’t pay us anything until we facilitate a transaction, and then we pay you’.”
Deal Current daily deal software is an optional part of StickyFish, the points-based loyalty program that rewards broadcasters’ audiences for supporting the station and advertisers; and Fan Club, the audience home base which connects users to contests, surveys, games and other exclusive, member-only content.
Deal Current is currently in 66 cities serving companies such as American Consolidated Media, Journal Broadcast Group, and Buffalo News.
RBR-TVBR observation: Yes, local media companies are scrambling to offer their clients daily deal, group-based purchasing solutions. The two parts of a successful implementation equation are how well they know traditional media and how competitive their rates and revenue share are for the stations. Most stations want the lowest or no startup costs at all. The king of the deal market is Groupon, already in hundreds of markets. Groupon typically takes 50% and the provider receives 50% of the total value of the deals they provide. As Bell noted, the company realizes the future lies in local so they are reportedly amassing capital with the idea of unleashing local sales forces in markets they serve. This tactic may eventually undermine radio’s mission serving local, direct businesses. So anything like Daily Deals can help radio stave off the Groupon invasion and compete in this space.