financing began to burn advertising
buy site Groupon recently (finally) began to advertise. This is the second time since the 2011 Super Bowl ad on the u.s.. You can take a look at:
this advertisement compares two kinds of consumer behavior: buy tangible goods (vs money to participate in a variety of experience goods store) (advertisement in "Have" vs "Have-done"). Which shows the Teppanyaki, Spa or bungee jumping and other services or experience you can buy on Groupon. Advertising has 15 seconds and 30 seconds of two different lengths.
Groupon is the main consumer of 35 ~ 54 years old women. This time they set the target audience for the millennium. Before they make the ads, the market research shows that millennials enjoy the experience more than physical products.
"we actually have more story narrative, because Groupon has tens of thousands of service, we hope that consumers can experience and try out," Groupon North America marketing director Jon Wild said. So they identified the idea of marketing.
since last November for CEO, Groupon increased marketing investment. According to its earnings, last year’s Groupon marketing costs $254 million, of which $63% in the North American market. New CEO Rich Williams said they will increase this year 1.5 ~ $200 million marketing budget, mainly for the North American market.
at the beginning of February, the Alibaba purchased 33 million shares of Groupon stock, becoming the fourth largest shareholder of it. April, Private Equity Investment Firm Atairos Management by way of buying bonds to finance $250 million Groupon. These are Groupon to increase marketing investment to provide funds.
last year, Groupon’s performance exceeded analysts’ expectations, but its performance is still not ideal, but also from the layoffs and exit the throes of recovery in overseas markets. In the first quarter of 2016, its trading volume and total revenue fell by 5% and $2%, respectively. The good news is that their business in North America has improved, revenues rose by 4%, and profits rose by more than $11%. Although an increase in the marketing budget will affect profits in the short term, but Groupon said it is confident that the investment can be recovered in 2017.