Groupon, which was featured in an earlier post and also in my social media presentation at the DMA in San Francisco, has recently spurned a $6 billion takeover offer from Google. Pretty cheeky…. considering that there’s nothing proprietary or patent-able about its business of delivering a daily coupon to your inbox with a big discount on a local business.
Indeed, Groupon is one of four coupon outfits I now hear from on a regular basis. BlackboardEats is doing something similar for San Francisco (except they don’t collect the money up front which is good for me but a poor profit model for them), Open Table has gotten into the act with discounts as well as reservations, and LocalSavings is giving Groupon a real run for its money here in the upstate NY area.
But Groupon’s emails are the ones I always open, and why? It’s the copywriting! Today, for example, in an offering for a Portuguese restaurant, the copywriter noticed it had small plates and delivered the following riff: “Small plates provide diners with a rare chance to act like a giant and yell “fee-fi-fo-fum!” at the waitstaff. Enjoy a make-believe growth spurt with today’s Groupon: for $20, you get $40 worth of Portuguese cuisine at Atasca in Cambridge.”
That’s the kind of extemporizing that used to get us yelled at by our bosses when we were cub copywriters… but as always it’s followed by solid research-based benefits including a description of menu items, a reference to its listing on a best-of directory, and a verbal capsule of the ambience: “The in-house atmosphere is warm and romantic, bedecked with Portuguese art and fresh flowers, ideal for a smooch-inducing date or a platonic rendezvous with a band of surly Casanovas.” You can’t make this stuff up, at least you can’t day in and day out. I spoke to one restaurateur who was a happy Groupon client and he said yes, someone from Groupon did indeed call and interview him at length.
I have one worry for Groupon though, and that is its inability to attract quality advertisers in the hinterlands. In San Francisco and Boston, the specials are from recognizable establishments where I’d want to eat anyway. But in Dallas and Albany (all part of my quixotic geographical rotation) we tend to get tanning salons, car washes and second-tier pizza joints, the same folks who show up in Val-Pak.
If Groupon is going to grow beyond $6 billion they’re going to have to find a way to sell creative marketing to the late adopters. If Groupon should happen to implode, at least there will be a lot of good copywriters available for hire in the Chicago area (where Groupon is based).