I haven’t paid much attention to Groupon lately. The company is releasing its Q4 2013 results today after the market’s close. Consensus expectations are that the company will report roughly $720 million in gross revenue.
The site just lost product guru Jeff Holden to Uber and many people have written off the “deals market” and Groupon with it. Groupon will survive however. It has a brand, lot of customers, advertisers and revenue.
It’s transitioning from a mostly push, email marketing platform to a comprehensive deals marketplace that includes search. In addition, the company, like Facebook and Twitter, is now increasingly mobile focused.
During its Q3 earnings call and reporting the company said, “Groupon crossed the 50% threshold in September in North American transactions occurring on mobile devices, which we believe makes us the first large-scale e-commerce company in North America that is predominantly mobile.” Globally about 40% of transactions are executed on mobile devices.
Here’s the company’s product lineup right now:
The product lineup above includes horizontal and vertical lead-gen, e-commerce/transactions and operational tools (POS). There’s also data and analytics. Loyalty’s in there too and of course multi-platform marketing.
In a broad sense this is a model of sorts for where the rest of the local service provider and directory market needs to go. I’m not arguing that it needs to emulate Groupon specifically but the diversification of services away from pure advertising or lead-gen is going to be necessary over time in my opinion.
Two questions for you:
- What do you think is going to happen to Groupon longer term?
- Do you agree with my thesis that local media and advertising sales channels need to get into transactions and operational support services like this?