yipit webinar 8-19-10
DESCRIPTION
These slides appeared in a 8-19-10 webcast: Local Social Commerce - The Explosion of Group Buyinghttp://internet2go.net/webcasts/social-networks/webcast-local-social-commerce-opportunities-group-buyingTRANSCRIPT
Local Social Commerce: The Explosion of Group BuyingAugust 19, 2010
Agenda
Competitive LandscapeConsumer BehaviorSMB ValueConclusion
Yipit = “Kayak.com” for Daily Deals
Launched Feb 2010 Available in 8 Cities
API Launching Soon
Atlanta Boston Chicago Denver*
Los Angeles NYC San Diego San Frnacisco
About YipitINTRODUCTION
Drivers for Decentralization
Easy to Launch
+Immediately Competitive;
Generating Revenue
=
Remarkable Success
+
COMPETITIVE LANDSCAPE
120+ local
group-buyingservices
________________________________________________________________________
US only, see blog.yipit.com for further data. Worldwide figure greater than 500 (TechCrunch, 7/30/10)
Daily Deal ProliferationCOMPETITIVE LANDSCAPE
________________________________________________________________________
US only, see blog.yipit.com for further data. Worldwide figure greater than 500 (TechCrunch, 7/30/10)
Publishers Enter via White-LabelCOMPETITIVE LANDSCAPE
Exclusive Deals From… Powered by…
________________________________________________________________________
Recent data on Groupon is consistent: (i) breakage of 10% (TechCrunch, 8/14/10), and (ii) 20% redemption in month 1 and 15% redemption in month 12 (Chicago Tribune 8/16/10).
Breakage Rate ≤20%CONSUMER BEHAVIOR
________________________________________________________________________
Most common Daily Deal categories. Data from 807 past Daily Deal promotions, normalized for list size. Revenue = price * quantity sold
Revenue Varies by CategoryCONSUMER BEHAVIOR
________________________________________________________________________
Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses. Groupon’s reports repeat interest at 97% (grouponworks.com)
Business SatisfactionSMB VALUE
________________________________________________________________________
Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
Beginning to Shift Ad SpendSMB VALUE
Deal driven consumersSMB does not own emailSample reports 19% retention1
________________________________________________________________________
1. Defined as Daily Deal customers returning for at least one more visit. NB: Very difficult for most SMBs to quantify, limited sample size.
Consumer Retention is Difficult…SMB VALUE
Apps offering incentives for repeat deal (eg, Scoutmob)
Savvy businesses offering follow-on discounts
Deal proliferation means more deals in home-work corridor
…But May Improve Over TimeSMB VALUE
Scoutmob iPhone App
Increasing fragmentation, led by publisher/white-label partnerships
High consumer growth and low breakage rate
High SMB satisfaction Daily Deals are a potentially disruptive
local advertising channel
________________________________________________________________________
1. Defined as Daily Deal customers returning for at least one more visit. NB: Very difficult for most SMBs to quantify, limited sample size.
Expect Continued GrowthCONCLUSION
