Tippr Syndicates the Deal for Publishers
Hop Aboard the IPO Merry-Go-Round
Can Less Be More for Daily Deal Merchants?
The daily deal company Tippr makes more money from creating an online sales presence for media companies than it does peddling discounts for restaurants and spas in local markets through its own site. Now, it’s creating a syndicate that lets those companies share deals nationwide and collect revenues.
Today, as the Daily Deal Summit West opens in San Francisco, Tippr is announcing that it also has 1,200 affiliates that, together, command 10 million unique visitors a month. Tippr says it will form a vast and lucrative platform for all of its deal publishers, including television companies such as Belo Corp. and Univision as well as affiliate stations of Fox and NBC.
“That’s a critical mass,” Tippr CEO Martin Tobias tells Portfolio.com. With that number of eyeballs, the company has come up with an additional way to help its daily deal publishers make money: by taking all of the deals that are available and allowing publishers to share them not only with their own audiences but to readers of all of Tippr’s affiliates. This includes major sites such as Yahoo, Bing, deal aggregator Yipit and mom blogging site CityMommy. Tippr filters the deals to target consumers across the various affiliates so that they go to the right audience.
For example, Tippr clients that signed on to its while-label platforms for deals include deal sites such as “The Goods," which was crafted for the website publishers for several NBC-TV affiliate markets, including one in San Diego. Now sites such as that one will be able to find new purchasers and collect revenues on any deals that they publish that sell via Tippr's affiliates. So a deal that is offered on The Goods for example may now run on Mommy Blogger, or on Yahoo, and if it sells via one of those affiliates, the TV station gets to keep a portion of the revenues from the deal.
“They’ll get between 10 and 15 percent on deals that sell through their affiliates, and they didn’t have to run an ad campaign on Yahoo to get that,” says Tobias, who said the white-deal platform has evolved and is the future for the daily deal business.
Similarly, given the size of its affiliates' reach, Tobias says Tippr is able to now offer national deals such as discounts on AMC movie tickets that its publishers can all benefit from.
Tippr's white-label platform model gets around one issue that has contributed to losses for Groupon, which is customer acquisition costs. By partnering with media companies its sites tap into captive audiences, and more importantly consumer email addresses—the ultimate commodity in the daily deal business as it stands now. (Observers say mobile apps, using location data, will be the next venue for the deal, but at this point, email is still the way the majority of the deals get done.)
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