Archive for August, 2010

Get Your Groupon

Tuesday, August 3rd, 2010

group buying concept

According to a recent data report released by Coupons.com, digital coupons have grown 100% this year, while newspaper coupons rose to 8.4%.

We like deals as much as anyone and recently, we’ve been getting them from sites like Groupon and Living Social. The movement of social shopping is gaining steam, but whether it will take off like social media giants Twitter, Facebook, or Flickr still remains to be seen. With the explosive popularity of social media and rising number of engaged users tweeting and liking, it was only a matter of time before startups began to create social media commerce services as well.

There is a wide range of commerce applications, all of which differ in level of involvement and amount of information users share. Applications like Swipely and Blippy ask users to sync their credit card transactions in order to share purchases with friends. Groupon, EarlyBird, and Living Social bring users daily deals. In Groupon’s case, deals are “unlocked” if enough people sign up for the offer – group buying. Groupon is now expanding its movement with Personalized Deals, which will customize daily deals each user receives, a move that competitors such as DealPop is making as well.

Although purchase sharing apps aren’t catching on yet – understandable since transactions aren’t exactly something most users want to share – group buying is rapidly expanding into more markets, giving services like Groupon leveraging power on which companies it chooses to feature. These services are changing how new products and businesses promote themselves to a larger audience — and we’re keeping an eye on how the power of collective buying impacts marketing strategies.

[stats via MediaPost]

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