Digital Deals Offer Retailer’s Advertising Boost as Disposable Incomes Remain Low

Since the introduction of the IPhone and Apple’s apparent digital universe take-over, a new digital advertising niche has emerged and exploded:  smart phone couponing.  Companies like ScoutMob, Groupon Inc., and MyDailyThread LLC have created systems for smart phone users to enjoy major (as in 50% and more) discounts on retail goods and services.  Users simply log onto the site to sign up for the service.  Once they’re registered, the company sends daily email alerts advertising a featured vendor’s discount.
More than just a glorified e-blast, the couponing companies offer power by numbers.  Many of the “deals” only become valid once a certain number of smart phone users have “claimed” them (usually requiring well over 100 deals.)  Users may purchase online and printing a certificate or claim directly from their phones and show validation to the proprietor at the time of transaction. This process ensures that the “deals” are advantageous to customers, vendors, and couponing companies alike.

Profiled in a recent publication of the Atlanta Business Chronicle, area restaurateurs enthusiastically endorsed this type of advertising praising its ability to communicate the reputation of established brands to a younger, digitally savvy demographic.  Similarly, this younger demographic is also using these couponing sites in conjunction with social media by posting their experiences and bragging about their deals: furthering the advertiser’s reach.
As a small business owner, the thought of reaching tens of thousands of potential customers instantly might bring dollar signs to your eyes, but proprietors should take note.  Generally, the “deals” that seem to do the best on these sites are those advertising things that appeal to a purchaser’s  sense of fun (i.e.- restaurants, massages, laser hair removal, white water rafting, etc.)  Like something someone has always wanted to do but couldn’t necessarily rationalize paying full price for- like a regularly priced $15 hamburger…

These sites have very strict application guidelines. Not every business is suited to this type of advertising.  If your business’ service menu is varied enough, it may be advantageous to bring in an outside marketing professional to assess how to best direct your advertising efforts.

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