Groupon Wants to Deal Directly With Its Ad Business
As Groupon (NASDAQ:GRPN) tries to turn profitable again (see Editor’s Note below) in the ever-evolving e-commerce sphere, the deal-of-the-day website is working to boost its marketing efforts and take some of its ad business into its own hands.
According to TechCrunch, the company announced Monday that it is rolling out a new platform called the Groupon Partner Network that will handle Groupon’s own affiliate marketing along the lines of its product deals and services. In a move that deviates from the company’s norm, the new program will go international right from the get-go and serve the company’s 10,000 content publishers in 34 countries.
While Groupon used to treat its marketing efforts in each country differently, the company now recognizes that a global platform is more effective and allows things to get done more fluidly. Groupon’s business revolves around its ability to affectively publish its deals, goods, and other services. That’s why affiliate marketing is such a key factor to the company’s bottom line: It dictates where its offers can be publicized and how much a third party gets paid each time a user purchases a Groupon deal.
Though the affiliate marketing sphere isn’t virgin territory for the company — the website has worked with an affiliate marketing team since 2009 on national programs run through third parties — TechCrunch explains that Groupon is now ready to take the reins and be its own ad distributor, thus controlling the business more.