1. Booz & Company This document and its analysis are property of Booz&Co. Use of any information should clearly reference its authors. The Power of Online Deals A Perspective on Group deals Amsterdam, 26 January 2011
2. Inform about the development of a new âŹBn industry Provide an overview of the market & its players Future Outlook - where is this heading? OBJECTIVES
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5. The key value lies in the ~50%* commission for Groupon, and âno cure, no payâ customer acquisition for the merchant Amsterdam Deal example January 25 th , 2011 * Approximation, based on interviews with Groupon customers
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7. Inform about the development of a new âŹBn industry Provide an overview of the market & its players Future Outlook - where is this heading? OBJECTIVES
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11. Also in the Dutch market more and more companies are entering the dealvertising space Launch date Rev/Month* Company MyCityDeal - March 2010 Groupon - May 2010 Groupdeal - April 2010 TMG - May 2010 Jan 2011 Jan 2011 Jan 2011 * estimate Source: Booz&Company Analysis ⏠1.5-âŹ2Mn ⏠100-âŹ150k < âŹ10k < âŹ50k < âŹ50k
12. Primary focus of deals is on Dining and Health & Beauty services⊠0 % of Deals per Segment Groupon Amsterdam main deals Jun-Dec (194 total) Fashion Nightlife 4% 3% Activities 12% Other Retail/Services 1% 3% Health & Beauty 35% Events/culture 1% Dining 42% Online Source: DealVertiser Analysis
13. ⊠with highest absolute discounts in health & beauty and retail services f Coupon Price Coupon Value Activities Other Retail/Services Health & Beauty Online Dining Fashion Events/culture Nightlife Average Coupon Value & Price per Segment Groupon Amsterdam main deals Jun-Dec (194 total) ⏠84 ⏠71 ⏠39 ⏠28 ⏠24 ⏠20 ⏠17 ⏠8 Avg. Discount Source: DealVertiser Analysis
14. Inform about the development of a new âŹBn industry Provide an overview of the market & its players Future Outlook - where is this heading? OBJECTIVES
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18. Going forward we anticipate further sophistication of local targeting: getting you the most relevant deal at the right time Example: Yahooâs âdealâ mobile ads
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Hinweis der Redaktion
Merchant provides A local deal 40%-80% discount Terms & Conditions Groupon creates Landing page Graphics Deal text & context Groupon activates Deal on Groupon platform Multiple deals in multiple cities (>150 cities) Groupon ensures Traffic generation Online advertising â pain creationâ - sense of urgency Customer socializes Through FB/Twitter/Email To earn referral fees ($10) With friends/family/colleagues Customer socializes Through FB/Twitter/Email To earn referral fees ($10) With friends/family/colleagues Customer Redeems Coupon in store Through off/online reservation