by Katharina Familia Almonte
Grouponing, NYT, Publishers
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Local deal aggregator Yipit predicts that publishers will soon dominate the daily deal market. In fact, there are a couple of reasons why publishers are uniquely positioned to offer daily deals on their websites. They already have a large audience, an acknowledged brand and usually a strong local publicity. Moreover, they have their own sales power and a network of advertising clients who could be turned into partners for daily deals.
To sell daily deals on their website, publishers can use white label solutions from group buying services like ChompOn. On ChompOn they can set up their own deals, create a simple widget and implement it on their websites to sell the deals under their own brand. The service is free; ChompOn only makes money once the publisher actually sells deals, keeping a percentage of the monthly revenues.
Another possibility for publishers to tap into the group buying market is starting a co-branded partnership. The best example for co-branding probably is Groupon. You can find their deals on the websites of many local newspapers.
The third possibility for publishers to offer daily deals is what The New York Times announced two weeks ago and many other publishers did before: Start their own group buying business. The new platform of the NY Times is called TimesLimited. Similar to Gilt Groups Gilt City it focuses on the high-end market. The deals come from advertising clients of the NY Times and will be exclusive on the new platform.
“We looked at partner options when we began looking at the space a few months ago,” said Denise Warren, senior vice president and chief advertising officer for The New York Times Media Group on paidcontent.org. “But we realized that we have the assets, the consumer reach and the relationships with the advertisers to do this on our own.”