Yelp has announced that it is cutting its daily deals staff in half and Facebook recently announced that it is giving up on its version of the Groupon competitor. The Facebook version was launched in April and such a short tenure speaks volumes about the daily deals market. The full market has created wary consumers and merchants and cut margins significantly. 52% of consumers say they feel overwhelmed by the number of emails received daily.
This is not necessarily bad news for the digital agency. Even though daily deal offerings are slimming down, the main brands are still growing. Groupon is expanding its sales staff and seeing increased profits. This speaks to a contracting market and not necessarily a shrinking market. Contraction is good news for the digital agency because it means consumers will receive less emails and be less distracted, allowing the remaining offerings to be less diluted than they are now.
Tags: Daily deals · digital marketing · Facebook · Groupon · Internet2 Comments
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