Daily Deal Market Ripe For Consolidation

According to Yipit, there are 384 daily deal websites operating in North America that it knows about. This number is almost certainly far higher once you consider all the smaller sites that are not able to run deals each and every day.

So is the market too saturated? Is the industry doomed to fail because there are too many competitors competing for an ever shrinking supply of customers?

In 1876 Alexander Graham Bell demonstrated the telephone and one of the biggest communications companies of the time immediately dismissed it with the famous quote:

“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”

That company was Western Union and the lack of foresight for this new technology meant they were never able to compete in the profitable telecommunications industry – an industry which they had previously dominated with their telegram service.

Between 1894 and 1904 over six thousand telephone companies went in to business and from there mergers, acquisitions and closures happened to consolidate the industry to just a handful of companies today.

In 1939 there were 132 railroads in America, today that number is just seven as mergers, acquisitions and closures meant huge consolidation in that industry.

An early 1900's American train

The sort of train that powered America in the early 1900’s

In 2005 there were a huge number of social networks available, Myspace, Orkut, Bebo, Friendster and Classmates to name but a few. Today? We have one site, Facebook as the market consolidated.

In 2007 there was just one daily deal website worth mentioning which was Woot, a hugely popular and profitable website that continues to grow and increase its revenues. After the launch of Groupon it spawned off thousands of clones around the world, over 400 of them in American alone.

Since 2009 there have been 72 acquisitions in the daily deal industry, 44 coming in the last 6 months alone. Groupon have gone for an expansion by acquisition business model with at least 8 buys under its belt, Google too is eyeing up the industry with several acquisitions in the daily deal market to expand its Google Offers programme.

There are plenty of other acquisitions too, LivingSocial have bought at least seven daily deal sites and BuyWithMe have purchased 6 daily deal sites before they too have been purchased.

So just like other new inventions and markets spawned hundreds of clones, it might look like the daily deal market is in decline as the number of sites decreases but there is still a very healthy merger and acquisition process taking place as the deal market looks to consolidate and become profitable.

Which tablet works best for you?

With the holidays fast approaching, tech companies are readying new products to woo people looking for the latest hot item in the tech industry. Games consoles, flat screens, and smartphones have had their time in the sun as popular holiday purchases, but this year belongs to the tablet.

Apple dominated the tablet market last holiday season with the introduction of their revolutionary iPad, a wild success with consumers. Since then competitors have tried to emulate the magic of the iPad in an effort to cash in on the new tablet market, but to little avail: HP’s tablet failed to impress consumers, while Motorola’s Xoom tablet has struggled to establish a solid consumer base since its release in January.

But Apple now has two serious contenders to face in the tablet arena: Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet. Amazon and Barnes & Noble, are both wildly successful companies in their own right, are looking to transform the popularity of their digital reading devices into sleek, user-friendly tablets. Now that there are at least three viable tablets to choose from, it’s time to determine which would be the best buy for the holiday season.

Price

We can separate the tablets from each other right from the beginning by looking at their price ranges. The Apple iPad 2 starts at $499, while the Kindle Fire Starts at $199 and the Nook Tablet is priced at $249. Now the disparate prices may be enough to determine a consumer’s purchase; the $300 price gap between the Kindle Fire and iPad 2, for instance, will likely drive many consumers to choose the cheaper tablet.

An iPad 2

An iPad 2 showing off how ‘amazingly thin’ it is

But of course these tablets are priced according to their features. The Kindle Fire and Nook Tablet are much closer in price, and analysts expect that consumers will transfer their digital reader loyalties to the tablets — Kindle users will go to the Kindle Fire and Nook users will likely follow suit with the Nook Tablet. Both tablets will be optimal for digital reading, web browsing, and multimedia functions.

Part of Nook’s more expensive price tag can be attributed to the better hardware: the Nook Tablet has 1GB of RAM and 16GB of storage, compared to the 512MB of RAM and 8GB of storage on the Kindle Fire.

While the iPad 2 stands as the most expensive tablet on the market, it also boasts more attractive components than either other tablet. With a larger screen (9.7 inch), built-in 3G, and access to hundreds of thousands of apps from the Apple store, the iPad 2 certainly offers a host of features that would make any tablet competitor blush. Is it expensive? Yes. Do you get what you pay for? Yes.

Stand-Out Features

There are certainly stand-out features to consider with every tablet. The Kindle Fire may not have the hardware on par with the other two tablets, it will have optimized internet usage through Amazon’s cloud service based browser, Silk. In theory Silk will allow the user to perform multiple functions online at once without overburdening the tablet because part of the computing power will be done via Amazon’s cloud system. The Kindle Fire also has the Amazon name in its favor, one of the most trusted names in online retail.

The Nook Tablet has the distinct advantage of being sold at brick and mortar Barnes & Noble stores. A consumer can walk into a store and purchase a Nook Tablet on a whim, something that the Kindle Fire simply can’t compare to.

Barnes & Noble have also hinted at creating spaces similar to Apple’s genius bar, built solely for the maintaining and assistance for all things Nook related. If there’s any credence to that rumor, it could help jettison the Nook Tablet to the top of the market.

As for the iPad 2, its standout feature is simple: it’s an Apple product. The brand loyalty alone has driven millions to purchase the tablet, regardless of the high price tag. But it remains to be seen if Apple will continue to charm potential tablet users in the face of these newly minted tablets from its competitors.

How to start a career in social media

Social media has turned into a multi-billion dollar industry and opportunities to build a career around it are becoming increasingly common.

If you’re looking to start a career in the competitive world of social media and digital marketing, setting up a blog is a great place to start.

A blog not only allows you to express your personality and offer your opinions, but also gives future employers an insight into your knowledge, skills and experience. Pick a subject that you are passionate about and blog regularly to attract readers and establish your credibility. Aim to be a unique voice in the ‘blogosphere’.

There are a variety of free online services available that can help you with the technology side of setting up a blog. Then it’s a case of attracting followers by creating interesting content, updating it regularly and promoting it through other social networks such as YouTube, Facebook and Twitter.

Twitter's LogoPursuing a career in social media however is not just about knowing how to send a tweet, post a blog or set up a Facebook page. At the end of the day all businesses are looking at the impact social media has on their customer relations, business strategy, marketing and product positioning.

Demonstrate that you are serious by enrolling in a diploma in digital marketing and social media such as the one offered by the University of Middlesex. The postgraduate course combines theory and marketing practices to teach students how social media is contributing to entrepreneurship and innovation in modern businesses. Students attend guest lectures by professionals from some of the major organisations in web and social media including Google, Twitter and Groupon.

To have a competitive edge in social media, keep up to date with the latest developments. Understand the importance of monitoring, evaluation and analytics. You need to be familiar with the main social media sites but also the less popular ones as well which may have the advantage of providing a more targeted audience for the services or products you are promoting. You need to be able to spot trends and differentiate between up and coming sites and ones that won’t last the distance.

More than likely when you enter a career in social media you will be expected to be a good all-rounder and take responsibility for all areas of digital marketing. Job roles include social media officer, digital marketing manager or even director of social media. However larger organisations may allow you to specialise, so you could find yourself with a job title such as blog editor, analytics manager, designer, social media developer or content manager.