Groupon TV ads to focus on brand building over DR

Groupon is to switch to brand building for its next above the line advertising campaign, one of a raft of initiatives it is planning to try and boost revenue gleaned from existing customers.

Groupon

The daily deals site announced earlier this year that it is to prioritise retention over acquisition as it looked to increase repeat custom.

The company’s next television campaign, which could launch later this year, will try and build brand equity rather than carry the direct response message used in its first television campaign in 2011.

Elsewhere, the site is to ramp up distribution of a newsletter offering latent customers £5 credit on deals that have proven successful. It is also likely that the Groupon Rewards scheme, which encourages users to redeem deals from their merchants more than once, will rollout in the UK.

Groupon is waiting for the outcome of an Office of Fair Trading investigation into its marketing practices, launched after the Advertising Standards Authority found that the site had broken advertising codes 48 times in the first 11 months of 2011.

Roy Blanga, managing director of Groupon UK told Marketing Week that it has introduced several measures in the past year, such as setting up a “Quality Assurance” team to vet the standards of deals offered and more fact-checking steps within its editorial process.

He did, however, admit that additional measures could have been introduced quicker and “greater diligence” could have been demonstrated.

The OFT is expected to announce results of its probe within days. Possible sanctions include forcing Groupon to change advertising practices.

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