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Groupon giving power back to the advertisers at what cost?

October 24, 2010

Recently named the world’s fastest growing Internet business ever by Forbes Magazine, special offers site Groupon has recently commenced testing a self-serve facility for retailers to upload their own special offers onto the site.

This would enable retailers to bypass the long waiting lists in each city they publish offers in, thereby creating more revenue opportunities for Groupon itself. In fact, only one in eight businesses that applies to list offers with Groupon actually makes it due to limited inventory.

I started putting all of this into the one blog, then realised they’re two quite different issues. Immediately, two key issues jump out at me, and I’ve loosely dropped in a different post for each:

1)      As a digital publisher, what do you do when you have limited inventory but aggressive growth targets?

2)      If you provide advertisers with a self-serve facility for special offers on Groupon, won’t retailers eventually set up their own Facebook pages or mini-sites to promote their deals at lesser cost?

Enjoy, and appreciate your feedback as well. By the way, this is not a criticism of Groupon specifically, but using them as a current example of what I have observed countless times in the industry over the last few years…

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