Earlier this week, Internet meme aggregator BuzzFeed announced that it was launching a daily deal service on its site, focusing on “LOL, OMG, and WTF” offerings.Whether BuzzFeed’s deals are a success or not, you can count on an avalanche of similar announcements in the coming months.
BuzzFeed’s deal service is powered by Tippr, one of Groupon‘s top competitors after LivingSocial. Tippr has a healthy daily business on its own site, but the BuzzFeed deal is an example of where Tippr thinks its real opportunity for growth lies: third-party distribution.
Tippr offers customised, white-label daily deals for web publishers. Publishers can choose from deals sourced by Tippr’s sales team, and the two split the revenue.
The sort of distribution the Tippr and competitors like Adility are doing makes a lot of sense. Publishers, especially those operating in well defined niches, can offer deals that are more consistently relevant to their readers than deals on a general mailing list like Groupon’s, leading to much better conversion rates. Many local newspapers have already started offering daily deals, on their own or through partnership with Groupon clones.
Actually sourcing original deals is a hassle, and outside the core competency of publishers. Furthermore, because deals originating with a service like Tippr’s can be promoted across many different sites, a publisher too small to sell out deals on its own can still offer them.
So if you’re sick of Groupon-type deals, and are waiting for the craze to die out, we have bad news: daily deals are coming soon to all your favourite websites.
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