Magazine article Folio: the Magazine for Magazine Management

Daily Deal Predictions for 2012: How the Market Will Grow (and Shrink)in the Coming Year

Magazine article Folio: the Magazine for Magazine Management

Daily Deal Predictions for 2012: How the Market Will Grow (and Shrink)in the Coming Year

Article excerpt

From delayed IPOs, to buyouts, layoffs and more, 2011 proved to be a volatile year for the daily deal industry. Publishers, merchants and business owners want to know what's next in the social commerce space.

After the maturation of the daily deal industry seen in 2011, a new paradigm will usher in programs that merge content with a seamless deal delivery experience.

The industry focus will evolve from deal sites and daily emails to other messaging formats, providing relevant deals where, when and how consumers want them. The year 2011 was just Phase One of group buying. Phase Two begins in 2012. Here are some predictions for what portends to be another technologically eventful year in group buying, and reasons why publishers may stand to gain the most.

MANY GROUPON CLONES WILL BITE THE OUST

With more than 600 companies currently operating in the group buying space, industry consolidation is going to become a very real threat. According to Yipit.com, over 170 deal sites failed in 2011. Next year the trend will continue as large companies purchase smaller rivals and other generic deal brands go belly up. Over 200 of the 'me-too' deal sites may close their doors within the first six months of the new year. Meanwhile, publishers and niche sites that have found a way to integrate daily deals into their existing content, rather than just photocopying Groupon's model, will not only survive but thrive.

2012 IS THE YEAR OF THE WHITE LABEL

White-label providers will reign supreme in 2012. According to Yipit research, this year white labels exhibited a transaction volume of 5-10 percent, but next year it may double as much as 20 percent. Media companies, niche bloggers and digital content creators have credible brands, local sales forces and engaged audiences-critical components that large horizontal sites spend hundreds of millions to grow. …

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