Brian McLane

Media and Social Commentary

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Value Added Sites Groupon and Living Social Lead the Group Buying Trend

July 3rd, 2011 · No Comments · Social Commentary, Technology

Just as fast as one web trend comes and gets traction, another was is on its way up. Think about it (going backwards). Twitter is the king of the hill right now. Before that was Facebook, and before that was Myspace. Before that the term Blogging had just entered the vocabulary. For those who are a little more adventurous there is UStream and before that Blog Talk Radio.

Now the trade-off always was that these sites give you a platform and easy to use content management tools in exchange for your data. And A LOT of it. Think about some of the data you’re providing that is sold to advertisers and marketers. And not just the picture of you and the kids at the water park or you re-posting someone’s funny video of a cat chasing around some toy.

How about:

  • When you routinely log on
  • How much time you spend on line
  • From where you log on
  • If, when and where you log on from a mobile device
  • What ads you click on
  • Where you’ve come from before you get to Facebook or another profile site
  • Where you go to
  • You might not think so but those and other behavioral traits are of immense value to let’s say real estate professionals and mall owners for instance.

    Then of course you have all the personal information that can be trapped easily with some simple scripting. In East Germany they had The Stasi who used to coerce or pay off your neighbors to be informants so as to get all that information that you and everyone else is only too willing to give up.

    Now there’s Living Social and Groupon who, just like LinkedIn are cashing in on the 2.0 trend and hitting the big time even as Fox doesn’t know what to do about it’s faltering MySpace property.

    Riding the what is referred to as the Group Buying Wave, Sites such as LivingSocial and Groupon are deal-of-the-day and coupon sites respectively that are sites which “leverage the power of collective bargaining. Living Social is the fastest growing company in the e-commerce space, specializing in localized daily deals across 240+ markets (and internationally now as well). It started in the restaurant space and now has over 26 million email subscribers across all kinds of horizontals. Now it’s flirting with a 1 Billion Dollar IPO.

    While LivingSocial started in 2007, Groupon which is an online coupon site is only a little over two years old. Groupon went from 30 million in sales for 2009, to nearly $645 million for just the first quarter of 2011. According to the Wall Street Journal, Groupon is probably the most anticipated IPO. Unlike LinkedIn for instance, one can imagine where the sales are actually coming from.

    Lots of deals for spas, restaurants, shoes and accessories, and so on. I think though that what we’re going to see in short order are tie-ins with promotional and marketing campaigns (meaning broadcast and PR initiatives). Just like every company from Boarshead to organizations like the Milk Producers of America have a facebook page and include those destinations in their advertising, we’ll start seeing includes for Groupon and the like in ads.

    I know I’m right, let’s just see how long it takes for the first ad to pop up.

    Click the image to read a great article that you can read about the Ten best Group Buying Sites.

    Group Buying Taking Over

    Group Buying Taking Over

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