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Originally established for times when I needed more than 140 characters to finish a thought on marketing or media.


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LivingSocial starting to look a little antisocial

pitr_scissors_half-open_iconLivingSocial, a daily deals site based in D.C., is cutting 400 jobs after losing $566 million in the third quarter. (The Associated Press reports that is 9% of their workforce worldwide.)

What a shame. It seems like only yesterday only July when the D.C. Council handed the daily deal site a $33 million tax break to keep it in the District — as opposed to letting it migrate to more business-friendly Northern Virginia.

From a July WaPo story announcing the tax break:
 

Despite having yet to turn a profit, LivingSocial has quickly become one of the city’s largest private sector employers. Its staff has swelled from four to 5,000 since 2007, about 1,000 of which are based in the District.

 

Is it just me, or is it starting to smell a lot like the shenanigans that preceded the Dotcom Bust?

It’s not just me.

From the MoneyWatch story:

 

According to trade publisher Daily Deal Media, in the last six months of 2011 alone nearly 800 daily deal companies closed their doors.

 
Talk about done deals …


What I missed on vacation: DealChicken hatches in D.C.

Employees at Gannett Co. Inc.’s headquarters got an email Thursday announcing the July 12 launch of the media giant’s new daily deals product, DealChicken. The company’s flagship TV station, WUSA9, will be one of the first of the Gannett properties to offer discounts on such things as boating lessons (who has time?), hot air balloon rides (really?), and gourmet spices (hot!).

In an email to staffers, David Payne, senior veep and chief digital officer, said WUSA will also offer television and online advertising packages that will help particpating merchants promote their deals — and lock in the ever-elusive return (conversion) customer. (I’m paraphrasing.)

Payne also cheered DealChicken’s “great success” in the Phoenix market, and noted plans to expand the effort into more than 50 markets by the year’s end.

Not to knock my employer, but I don’t think GroupOn has anything to worry about.

Do you?


FarmVille-maker Zynga files for $1 billion IPO

All of my friends who play FarmVille on Facebook (ALL. DAY. LONG!) will be interested to know the gamemaker Zynga has filed for a $1 billion IPO that The Wall Street Journal is calling a “test of investor appetite for social media companies.”

Zynga’s filing comes on the heels of LinkedIn‘s intial public offering in May, and Groupon’s filing June 2.

According to the Journal’s anonymous sources, the IPO, which will seek to raise $2 billion, could value the company as high as $20 billion.

Read the not-so-anonymous SEC filing here.

Does anyone smell a bubble? 


Breaking: Groupon files for IPO

In the wake of LinkedIn’s high-profile IPO, deal-of-the-day site Groupon has filed to go public, The Wall Street Journal is reporting.

A quick look at Groupon’s earnings from the story:

Groupon earned $644.7 million in revenue for the first quarter of 2011, up from $3.3 million in the second quarter of 2009 and $44.2 million in the first quarter of 2010. But it lost $102.7 million in the first quarter.

EARLIER: Groupon’s Super Bowl ad makes some people cry.


Groupon and CP+B: No crying over spilled fish curry

ED’S NOTE: This post reflects my interest in advertising as a marketing student. It does not endorse any product, services or agency. The opinions expressed here are mine and in no way reflect the opinions of my employers.

Advertising fun bunch CP+B is having a bad week, Ad Age reports.

Burger King jumped ship after seven years (no loss there), and Groupon’s Andrew Mason is still apologizing for the Super Bowl ad that has been wrongly vilified as the most tasteless spot ever produced in the history of advertising. It’s more than a month after the Super Bowl. Are we really still talking about this? Did the ad really hurt the deal-of-the-day site? Not likely. We are still talking about this ad. No one will shut up about Groupon. The publicity couldn’t have been all bad.

C’mon, didn’t Groupon know what agency they were hiring?

If you don’t want flavor, don’t order the curry. Here’s a similar sentiment from the Ad Age story:

The situation illustrates a classic tension in marketer-agency relationships: Clients say they want to take risks, but later realize they weren’t ready or can’t stomach the criticism associated with them. And CP&B is nothing if not a risk-taker, known for ads that reap miles of PR, even if they stir up controversy.

Maybe when Groupon goes public, Mason can afford some big-boy pants.

As for the disputed ad, judge for yourselves: