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

    
    

How To Get New Customers Using Your Website

Your website has the power to help you grow and transform your business by delivering a steady flow of leads or new enquiries. However, for many businesses, this just doesn't happen. In this article,...Read more

5 Signs You Need An Inbound Marketing Agency

Taking on an Inbound Marketing agency is a big step which needs a conscious commitment to investing time and money in your online assets, with the aim of seeing improved results in the long-term....Read more

Inbound Marketing Is Not About BHAG's

To some people, a strategy is simply about goal setting, a sort of happy-clappy love in where people agree to conquer the world. They believe if they set a BHAG or big hairy audacious goal it...Read more

Inbound Marketing Is Too Much Like Hard Work

I don't mind saying that some days inbound marketing just feels like too much hard work. "But Dave", I hear you say, "you run an inbound marketing agency, how can you say that?". Well, I'm not saying...Read more

A Day In The Life Of An Inbound Marketing Agency

Although it's no secret, many people don't really know what an Inbound Marketing Agency does from day to day. They know it's something related to websites and generating leads, but the nuts and...Read more