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FOXBusiness.com's Kate Rogers on why niche daily deal sites aren't able to keep up with the competition.
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I -- we're gonna focus down a little and news that comes out of our business website on Fox Business -- dot com and Becky Rogers here who it has some news about.
What's happening in the world the worldwide web and Internet -- and despite that.
Pop up that we see all across the board -- see a small businesses as you point out and the fact that that they've done some study in recession now showing that.
Many of those smaller size aren't going away they're not making it.
-- -- daily deals say it's a group time living social so there's a new site out there.
For daily deals for just that every demographic in the US you name it there's a site out there for them offering daily deals.
But what these smaller sites -- quickly finding out is that it takes more than just a good deal to keep customers coming back.
Legend of the challenges that face against the bigger companies well the challenges that they mainly fees are in email and distribution and marketing and so day.
Don't have these huge budgets -- -- -- groupon and living social have to.
Build up their email subscriber lists and keep their distribution happening and also the -- marketing.
According to you -- dot com they just have recently released data that found that 13 of these daily deal sites have closed down at a 520 total for the US so 13 of that 520.
Have shut down in the past year they -- there.
Completely closed down -- they've been bought out by bigger companies and -- spend about a 180 million dollars on.
Email distribution -- last quarter and about.
200 million on marketing want to -- this acting thing here is that small businesses don't have much in general let alone to spend on distribution and marketing these smaller size.
They come and like I mean.
Of those open offer coupons and things exactly like it there I'm -- -- -- -- and other sites like that exactly like that I.
Just in my own writing I've -- -- for -- -- -- for the gay community another one rapid buyer it's for small businesses only to buy.
Office supplies and things like that so there is pretty much in a site like that for.
Any community out there today and their quickly dying out because they can't keep up what when they were doing okay what was their advantage what was their -- at the time when they were actually hitting their market will -- -- -- sites that are are hitting the mark are safe that are ready.
Have established brand appeal for example travels in dot com.
The recently started doing daily meal offerings but they have twenty million subscribers are ready to very -- I subscribe yes so -- already have that established.
Brand appeal with their customer -- so they don't need to work hard on building up that email distribution list and spending a ton of money on marketing and another Alan that is doing while this is local news sites.
Because they have people that come to their sites every day.
And there -- trust them for contents vary.
Are going there anyway to get their news so -- also subscribing to daily deals that which makes a lot of send -- a lot of bad it's a no brainer and went bad that you for the network Clinton told.
-- -- -- -- -- -- -- -- -- -- Beat the relationship between the real news to everybody trusts the real name is you know -- -- in Washington where the real -- connected.
It into the Internet with that that that's a real force to be reckon it is because those problems with the great.
They are because if you're going there every day to read your news online -- watch videos or check out your local sports team -- it is.
You're ready there in Erie trust them to tell you the truth and to be accurate news so I'm not subscribe to some daily deals there to know -- -- -- win for the local stations I didn't advertisers it is definitely connect and make a lot of money at a time.
When advertising dollars had been shrinking in local media markets because of the fact that.
You know the economy has taken a hit resemble traditional places like.
Car dealerships in places like that that always advertising local news -- and things like that we've been driving this is another area.
Where they can really.
-- quite well they can and what I think is interesting about it -- is that I spoke to sound local deal aggregators like elliptical bargain be dot com she.
It's -- out -- all of these national local deals come and Peters and her community and then there's another blog.
Houston on the -- and she does only Houston based deals but it's not only daily deal sites other free community events and things like that and they're -- saying to me.
That it's not that people aren't interested in deals anymore because who doesn't want -- everybody wants a good deal.
But the thing that this smaller sites are struggling with is that they don't have that branded PO like group.
And they're just a force to be reckoned with same thing with living social which is kind of -- -- -- -- that they're only half the -- right now -- -- -- look -- are -- leader right asked point.
They are doing amazing is it that they haven't been around that long you know give us an idea that -- leader yeah the leader right now yeah.
A couple months you know say hello them and that they have mushroomed into an amazing for -- it's not necessarily the death of the daily deal like everybody's saying it is it's the smaller sites are being bought out or they're just closing down losing money -- Those are being bought out -- For those people that may be you know.
Getting.
That we're say you know the prime candidate they -- privacy and you know -- even if they don't always get.
Again bought out as well they're still coming out ahead on that daylight right yeah that's what you would hopefully happen for some these -- companies is that they're bought out not that they bottom mountain it was not exactly exactly was great to see you thank you so much for having me updating us and we can all read your piece today -- I'm not small business stop Fox Business back and terrific great to have you on what they thank you very much and He.
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