Archive for the ‘Analysis’ Category

Back online and “Groupon, told you so”

May 5, 2012

After a pretty long hiatus I promised myself to make time to get back again to collecting and curating great articles in brand and marketing strategy and color them with my own take. So what better way to (re) start than by putting a bit more spotlight on the meteoric rise and what looks like a meteoric crash of the once touted:

We have lift off.

“the fastest growing company in history”.

As early as 2011’s edition of SXSW, everybody was talking about Groupon Envy; some folks in the industry commented at the time that a social media bubble was forming in the valley and the only company with a clear revenue model and a bright future was Groupon.

The chain of events was fast and tumultuous as if it was scripted: Becomes talk of the town, goes from hundreds to more than 8,000 employees in less than 2 years, hundreds of competitors swarm the daily deal market, tries to innovate with better targeting and real-time deals, launches IPO and… in a matter of months, the stock price sinks to half of its initial offering, and everybody realizes that their product has essentially become irrelevant.

Some had predicted Groupon’s dim future, but the voices are getting much louder now, and Groupon’s sales force are starting an exodus. Call it the canary in the mine. From Venture Beat:

Here’s the deal: I’m outta here.

According to a former salesperson at Groupon, top sales talent is leaving the company as its troubles mount. As of this morning, Groupon reached another all time low, trading on the NASDAQ at $10, half off its $20 IPO price. In just the month of April, the stock lost 42% of its value.

Sales people are leaving for a number of reasons, but one of the biggest is that volumes on each deal are declining. This is something I’ve noticed lately. It’s not uncommon for a deal in the San Francisco area to sell fewer than 100 units.

Full article here:

Read it and weep. Or not.


Photo credits: NASA, Moon Angel


YouTube still Video King – but Facebook growing fast

August 18, 2010

It’s no secret that the video destination of choice for most users is YouTube, but the last figures from comScore uncover other interesting dynamics:

  • Hulu, which ranks only 10th in unique users, well below Yahoo!. Microsoft and Facebook, actually logs in more minutes per viewer than all of these 3 competitors combined. This is obvious given that their business model is based on long format programming, but it’s easy to oversee that duration of engagement is one of the most attractive features for advertisers.
  • Vevo only launched earlier this year but has now climbed to the top 5 video sites, ahead of Viacom, Fox, Metacafe and Disney.
    I predict this may become eventually the 2nd most popular video site for 3 reasons:  The infrastructure support of Google, the marketing investment of  the leading music labels and the laser focus on high quality music videos, often providing official and exclusive content that users can’t get anywhere else.  A recipe hard to beat when attracting the 15-29 year old demographic.

Read more about these stats on Inside Facebook’s story here.

Photo credit: Kofoed

Uncoventional Wisdom in Advertising

May 5, 2010

As the saying goes, “Common sense is the less common of the senses”; equally, Conventional Wisdom is often misplaced as well especially when it comes to what drives a higher ROI in advertising.

For years, the traditional marketing school has emphasized Share of Voice and heavy media up weights as the solution to cut through. A recent study published by Ipsos, aggregating thousands of ads among multiple categories shows that this is not the case. The study shows in fact that content and creative power explains up to 75% of the variances between ads that are recalled and those who are not.

Other interesting insights:

  • Creative pools (e.g. a set of ads under the same creative idea but with various executions) should be aired sequentially, not concurrently.
  • Adding an additional touch point is better than over focusing in one channel.
  • Continuous TV plans are more efficient than burst plans. This is because your ad should be the last one seen prior to a buying decision.

The full PDF is available here.

Photo credit: Francisco Diez