Posted by Thursday, 9 February 2012

Has The Groupon Bubble Eventually Burst?

As Groupon announce today of a significant loss of over $42 Million many have been led to ask the question “Is the Groupon bubble about to burst?”. Groupon has made its name by transforming the online voucher code and offers industry spawning a range of competing sites such as Wowcher, MyCityDeal and LivingSocial. With this said things haven't always been a bed of roses for Groupon who have faced complaints from users and participating companies alike with problems about offers, how they have been publicised or misleading claims which they have then have had to face the ASA over. As a result Groupon has also had its fair share of negative publicity with some companies blaming them for their bankruptcy when offers have gone awry. With this said are we as a society wakening up to the negatives and drawbacks of this type of voucher industry? Groupon has also been pulled up by the British Office for Fair Trading amidst claims of posting misleading vouchers and adverts as well as exaggerating saving claims on their site. In addition to this Groupon was reprimanded 48 times by the ASA last year for breaching advertising regulations and had over 60 of its adverts banned in the space of 6 months.

Groupon Logo

Groupon has been able to keep most of this controversy quite by acting to resolve these issues quickly however as all this

information now comes to light consumers may be force to think twice next time the click.

There are a number of theory’s being thrown about regarding Groupons sudden fall, whether it is a slump due to their quick growth or the fact that people are simply getting 'bored' and 'frustrated' with this type of marketing only

time will tell. Needless to say all those companies who have jumped on the bandwagon may live to regret their decision.

More in this category: Marketing and Mobile, Social Media

    
    

Helping Strangers Is Good For Business, It's Called Inbound Marketing

We get plagued with calls and emails from companies offering their web development and SEO services. I guess that's kinda funny given web is what we do, but when you've deleted the 10th...Read more

Crushed Nuts?

When I was a kid and the ice cream van came round it was a treat. When the vendor squirted the soft ice cream into the cone and asked if me if I wanted crushed nuts, it made me laugh. Life was...Read more

Interrogate Your Competitors Websites

Imagine if you could find out what your competitor's websites rank for in Google. Imagine if you could see just how valuable the traffic they get from Google really is. Well, you can with this great...Read more

The Harsh Truth About Websites

I feel privileged to work in what I believe is a dynamic and exciting industry and I'm lucky to work with a diverse range of businesses, large and small, throughout the UK and beyond. I've been doing...Read more

Can You Unleash Your Website's Potential As A Lead Generation Machine Without Hiring An Agency?

Inbound Marketing or Lead Generation Agencies specialise in helping businesses generate revenue from their websites. However, hiring a lead generation agency isn't for everyone. In much the same way...Read more