Groupon buys TV ad space, makes Digibrock think

11 01 2011

So Groupon has an excellent customer acquisition strategy. $10 (£6 for every friend referral) and an aggressive online marketing campaign. Plus, up till now they had great coverage with their affiliate marketing.

So why do they need to buy a pre-superbowl TV ad? Seems a tiny bit weird. Especially since it’s apparently the beginning of a whole larger campaign. Start-ups like Groupon challenge old school media companies for their business and then contradict their business model by saying that their marketing strategy needs TV?

At least, that’s what I thought until I realised that customer acquisition isn’t the only priority for start-ups like Groupon. When your business is all about marketing on behalf of other companies and delivering new customer leads to those businesses, sometimes their perceptions of powerful marketing is more important than what actually delivers new customers.



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