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Group Buying Media

Groupon makes $11 million in a day with a $25 Gap coupon.

This is the reason why Groupon is the fastest growing business model in the world today. I can’t think of any other businessess that can rake in pure hard cash of USD$11 million in a day, can you?

In August 2011, Groupon rolled out their first national offer spanning over 50 states in the US. 441,000 bought the offer at a 50% off and spent a total of $11million in a day. Groupon’s nett income for the day was slightly over $5 million for a typical 50% cut from the merchant. Amazing results from a $25billion dollar company due for IPO this year.


For the advertiser( or merchant you might want to call it ), the deal translates into 44,000 of guaranteed customers, repeat customers, upsell opportunities, referral possibilities and more importantly an exponential growth of viral word of mouth.

It is obvious that the deal have been able to achieve a great deal of publicity driving brand equity up the roof since it has been receiving rave reviews from the press. At least for now, it is clearly seen as if that it is the brand leader in its category, far ahead of other branded apparels.

This is certainly a testimonial to all blue chip companies that doubts the capabilities of group buying media structure to deliver top class marketing communications since the latter had been typecast as an insignificant sales promotional channel for small and start up retailers. Seems like a huge mistake!


About Pete WP Fong

Pete is the Digital Marketing & Social Media Consultant of DMC Engage365, pioneering the landscapes of digital marketing with huge ambitions to bring local brands to virtual life


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