Co-CEOs Of Groupon Believe The Daily Deal Company Can Generate $100 Billion

Gwyneth Paltrow’s $2,000 Groupon Sold Out!

LivingSocial Loses Longtime Sales Chief – Mandy Cole

Are Consumers Facing Daily Deal, SMS Ad Overload? Not Yet…

You can’t have daily deals without the daily part. It’s the inescapable reality of modern advertising that speaks to the burgeoning trend of mobile coupons, discounts, and other commercial offers pelting the average connected mobile consumer from sunrise to sunset.

But is it too much? Have advertisers shoved and shouted so much via the mobile and digital platforms available to them that consumers are rapidly turning away from daily deals and other related discounts as fast as they once turned to them?

The latest evidence suggests a lingering love affair, although it is certainly strained to say the least.

Good and Plenty

What was once chiefly synonymous with the name of a popular brand of candy is now the apparent moniker for the strategy used by many mobile advertisers, individuals who say “good and plenty” is what all mobile ads and discount shopping offers should be. That is, make ‘em great and keep ‘em coming.

Incredibly, despite the constant barrage of daily deals and advertisements flooding the typical consumer on a very frequent basis, the results of a recent survey by YouGov show that the mobile community is still remarkably welcoming of ads, discounts, and mobile commerce offers – regardless of how fast and furious they come.

65% of mobile phone users prefer to receive promotional SMS offers sent to their phones today, the study, which was published by SocialMediadd, reveals. 75% of smartphone users actually prefer receiving offers via SMS, although 83% would prefer to receive “no more than two offers per month.”

Only about 1 in 100 of our clients use SMS marketing, as opposed to 90% of them using email marketing,” says Brandon K. Gaille, the CEO of SocialMediadd.com. “This low penetration has led to cell phone owners only occasionally receiving offers via SMS text messaging. This is the primary reason for SMS being the most effective mobile marketing medium for eliciting consumer response.

Why The ‘Flood’ Must End

Although a majority of smartphone users haven’t yet been totally overwhelmed by and turned off to mobile advertising’s many tools, the report should be seen as a canary in the coalmine by industry professionals who still mistakenly believe that flooding the market – and consumers – with deals and ads is a winning long-term strategy.

“How you connect with people effectively is going to be a major battleground over the next few years,” says Marco Veremis, chairman of Upstream, which commissioned the YouGov survey. “We need to look at targeting in a different way than we’ve been taught as marketers.”

According to YouGov’s findings, 27 percent of UK and 20 percent of U.S. consumers will not use the products and services of a company that advertises or promotes too excessively, particularly with messages and emails that relentlessly bombard their mobile phones.

Sources: Upstream, YouGov, SocialMediadd

Michael Essany

Michael Essany is a veteran marketing executive, bestselling author, and mobile technology blogger who has served as Vice President of Indiana Grain Company since 2008. A former E! Entertainment Television host and producer, Essany resides with his wife and daughter just outside of Chicago, Illinois. Michael is Daily Deal Media contributor specializing in Social Media, eCommerce (and mCommerce) and Mobile Marketing/Advertising. Connect: @Michael_Essany
Newsletter
DDM Reports
The annual DDM Industry Report is the most comprehensive look at the Daily Deal industry. The 2013 report is our 3rd edition and takes a close look at the rocky road the deal industry faced in 2012 and the challenges coming up in 2013. Entering 2013, the deal industry appears to have found its mainstay in the ecommerce world. The debate remains, often brashly, as to the future of the industry as technology and consumer buying habits continue to expand. Throughout the sections of this report you will find exclusive insight to valuable daily deal intelligence including case studies, surveys, checklists, best practices, data, research, trends and much more. Within this 3rd Annual DDM Industry Report readers will find a unique review of the deal industry throughout 2012, highlighting key trends, players and developments over the past twelve months leading into 2013.
The 2013 Edition of the DDM Deal Publisher Directory is the most comprehensive contact list for daily deal sites, flash retailers, aggregators and individuals operating in the daily deal industry. Each record includes the following: - Company Name - Website - Contact Name - Contact Title - Email - Phone - Address (not all records contain a full mailing address)
The 2013 Merchant List includes 152,833 Merchants who ran 529,306 daily deals in 2012 with publishers tracked by DDM. The data includes contact details for each merchant and additional deal detail.