Photo: It all has to do with the battle raging between Groupon and LivingSocial.
Here’s an interesting take on the big marketing budgets from LivingSocial and Groupon.Charlie Kim from NextJump, which just launched a deals aggregation site, OO.com, says, “There’s very little proof” Groupon and LivingSocial’s big TV and online advertising spending is working.
We asked Kim because he’s jumping into a very crowded space with OO.com. How can he get customers on board without spending millions on marketing?
Kim is going to lean on SEO, and viral marketing, which he says is how LivingSocial and Groupon started out. “It was less about buying ads in the very beginning. Once they saturated the market, then they went toward buying ads.”
Kim says his site will also have superior personalisation tools, and it offers points bonuses on top of its deals. So, if you buy a deal from OO.com, you could get 10 points, for instance. Collect enough points and you get other goodies. (It’s like a credit card reward system.)
Kim knows he’s tackling a crowded space, but his company NextJump has been around for over 10 years, working on points programs for companies employees. He decided to add a daily deal component because it’s something that people clearly want.
With inboxes being deluged by offers it’s hard to see how OO.com stands out, but Kim says another advantage he has is access to thousands of employees through NextJump’s professional network.
(As for Kim’s claim that the LivingSocial and Groupon TV ads aren’t working … LivingSocial and Groupon are adding users at an unbelievable rate. Some of that has to do with the ad spend. Though, it’s fair to question how valuable those new users are.)
Business Insider Emails & Alerts
Site highlights each day to your inbox.