Last month I was at the Affiliate Summit and it was reported that over 51% of affiliate sales are driven by online coupons. The majority of these are online promotion codes similar to what you find on RetailMeNot.com. Retail Me Not went public in July 2013 and shares soared 32% in the first day.
Looking at this year Ebates is also gearing up for an IPO making the coupon space the hottest market in 2014.
At Deal Current we are excited about the coupon space. Every day we attract more advertisers to the Deal Current Platform who want to run local coupons on a performance basis.
To learn more about the Coupons.com IPO read “Anatomy of an IPO” at the Huffington Post which was originally posted on www.atelieradvisors.com.
Here is an excerpt:
On January 31, 2014, 16-year-old dot-com darling Coupons.com filed for an IPO. To put this event in perspective, PayPal was founded in the same year. While PayPal filed for its $70 million IPO in 2002 and received an acquisition offer of $1.5 billion from eBay later that year, Coupons.com made the decision to remain private. In general, the average company takes six to seven years to reach IPO readiness. Sixteen years is rare.
Strike When the Iron Is Hot
When 4-year-old PayPal filed for an IPO, its trailing 12 months revenue was $138 million, while 16-year-old Coupons.com had trailing 12 months revenue of approximately $153 million at filing. One could argue that Coupons.com did not have strong enough revenue growth to warrant an IPO in 2002. I would tend to agree with this. If Coupons.com revenue growth of 50 percent, as evidenced in its S-1 filing, has been consistent, it’s fair to reason that they may have had less than $5 million in revenue in 2001.
We are excited to announce that we are just a couple weeks away from releasing a brand new management center for all of our clients and would like to invite you to one of our preview webinars.
Our new system has a great new design, is mobile responsive like our consumer websites, and has a bunch of improvements to make managing deals and coupons even easier. Even more important, this will give advertisers really easy to use tools for deal redemption and coupon tracking that you can be proud to show off (Screenshots Below).
If you would like to see all that Deal Current has to offer I encourage you to sign up for one of the calls below or share this with your team.
Register for an overview session now by clicking a date below:
Preview of New Navigation and Dashboard
Preview of Reporting Center
Preview of Merchant Voucher Redemption Page
The last 45 days have been an exciting time for the tech team at Deal Current Network with two major updates
Here is a screenshot of the homepage and please let us know what you think.
A majority of publishers are adopting coupons and seeing great results. Actions by consumers on coupons grew 42% from 2400 in December to over 3400 in January. The number of coupons grew from 417 in December to 516 in January.
If you are considering adding digital coupons to your site, but haven’t yet then you should read this article from Emarketers.
We don’t believe that coupons are replacing deals, but we 100% believe that offering deals and coupons will lead to a bigger opportunity.
As a result, we are going to be sharing a lot of market knowledge and to start here are three tips to running a successful coupon program.
1) Make Sure You Get a Great Image From an Advertiser
We see so many merchants use bad photos, out dated photos, cheap stock art in advertisements and wonder why they don’t get a response
Here is a great example of an image that is awesome from, Cafe Ventana, a St. Louis bistro. They have a great picture and their logo placement is clean and clear.
2) Use Great Tags, Not Just the Business Name
Remember consumers aren’t typically looking for a specific business, but a business type.
So use tags that help a customer find what they are looking for in a certain category or neighborhood.
We recommend at a minimum: City, Neighborhood, Zip Code, Specific Services or Food Type.
3) Create Incentives to Sign-Up & Advertising Packages
When you first launch your coupon program, give new advertisers an incentive to try online coupons:
Create packages to entice advertisers to run more than one coupon at a time to increase your revenue faster. In our system, you would just divide the monthly spend and enter that for each coupon.
Bundle coupons with additional advertising to increase performance and your average sale.
SignPost, Local Offer Network, Boomtime, Analog Analytics and Second Street Media now incorporate a range of local offer formats. These can include deals, coupons, gift certificates and contests. So is San Diego-based Deal Current, which is specifically focusing on coupons to move beyond deals: both traditional, flat rate coupons, and performance-based coupons.
While deals remain attractive for their games- like excitement – especially in high margin categories — coupons are preferable to deals in many instances. They don’t churn as much and aren’t as time pressured – coupon customers tend to stick with the channel for years on end, and tend to add to their budgets as results are proven. They also work everywhere, unlike mobile-limited channels such as Groupon Now; and they don’t require businesses to share revenue.
Deal Current’s innovation with coupons is offering a performance-based option. It enables publishers to work with advertisers with no upfront costs. As President Patrick Dillon notes, “It is like AdSense, but better because you don’t pre-fund the account.”
Dillon notes that a performance-based model incentivizes publishers to circulate the coupons around the Web with SEO and aggregators. A performance based coupon, in fact, might look and perform like a text ad, but will cost 40 percent less than comparable online ad choices.