recently announced they are getting out of the daily deal space. But don’t call it a messy clean-up. This is not a bubble bursting; rather the industry is streamlining itself and focusing on core competencies. The Facebook and Yelp news makes sense, since neither company has a business model optimized for daily deals.
Also, Facebook's daily deal offering had put the company into competition with one of its major advertisers, Groupon. So instead of being the first signs of a fading bubble bath, Facebook's exit is an acknowledgment that it is better suited to be an enabler rather than a primary source for daily deal content.
These are just the latest moves in a dynamic market that is exploding even during the recession. Globally, there are more than 3,000 total daily deal companies, including more than 1,000 in China, more than 900 in Europe, and more than 600 in South America. This market is primed for rapid growth, and acquisitions (rather than organic growth) will likely take the market global.
With all this activity, attendees of the 2011 Daily Deal Media Conference September 8-9 in Chicago can expect a great deal of news and debate. At the conference, hundreds of daily deal executives, venture capitalists and media will be coming together to discuss the state of the market, its future direction and the global possibilities, especially with major IPOs looming. You can register here.
What is heartening to note is that executives are paying attention to the fundamentals needed to drive growth. For example, Will Elliot, VP of sales and marketing at Contactology will be leading a panel on “Email Engagement Strategies” He will be joined by executives from Email Vision and Strongmail who will provide best practices and advice on leveraging the various communications mediums and creating more engagement.
A number of venture capitalists will be present and discussing the state of the industry. The closing keynote speaker is Charles "Chuck" DelGrande, Senior Managing Director at McGladrey Capital Markets LLC and one of the foremost experts in venture investments and business development.
The two days will provide some good insight into how the market is likely to continue to evolve over the next year. Daily Deal Media will be reporting live from the conference floor as well as breaking daily deal news as it occurs.
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