Daily deals are hot. In the past year, this arena has exploded as newspapers embrace it. CNA/CCNA provides a brief overview of the current landscape and looks at what this trend is all about and how you can use daily deals to benefit your newspaper.
What’s this all about
Connecting local businesses with local customers. A different special offer is sent out each day via email to subscribers who have indicated that they are interested (i.e. opted-in). This deal only takes effect when enough people have indicated they are interested (sometimes 50). Participants are encouraged to share the deal to help it reach the desired number for it to take effect. Revenue is split between the advertiser, newspaper and the deal site partner (if one is involved – more on this below). The deal site is promoted via the paper, its website and its social media channels.
What’s the benefit
- The subscriber receives a great deal (and may also derive some personal benefit by feeling good about sharing it with friends, family and co-workers).
- The advertiser garners attention (from those seeing the offer even if they don’t use it) plus customers buy their product/service.
- The newspaper approaches non-traditional advertisers so they garner new revenue
How to get started
There are really three ways to proceed:
- Set-up using in-house resources: Not the most common and definitely the most time-consuming but ultimately all the revenues stay with the paper.
- Hire set up: Work with a “white label” organization (e.g. Shoutback, Analog Analytics, Metromix, Tippr) on the technological set-up and the newspaper handles everything else. Revenue is split between the advertiser and the newspaper (as the white label organization is not involved after initial set-up).
- Work with deal site: Partner with a deal site (e.g. Groupon, Living Social, WagJag). The deal site handles refunds or customer issues.
What papers are doing this and with whom
- Do-it yourself: The Arizona Republic
- White label solutions: San Diego Union Tribute, Virginian Pilot, Bakersfield Californian, Omaha World, Minneapolis Star Tribune and Morris papers (Athens Banner-Herald, Florida Times-Union & Augusta Chronicle)
- White label solutions: Black Press (BCDailyDeal$.com),San Diego Union Tribute, Virginian Pilot, Bakersfield Californian, Omaha World, Minneapolis Star Tribune and Morris papers (Athens Banner-Herald, Florida Times-Union & Augusta Chronicle)
- WagJag:Working with The Toronto Star, Metroland, Metro and the Globe and Mail
- LivingSocial: Working with Chicago Tribune, San Francisco Chronicle, Washington Post to name a few
- Groupon: Working with Media General and McClatchy media companies
The e-mail data base
- Most newspapers agree the key to success is building an email database.
- To build the database, the Virginia Pilot and San Diego offered a $10 coupon to users that share a deal with a frie