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Ah, just like the old days where companies were happy to virtually pay customers to make a purchase. Then again, cost per acquisition via ads is inching up to
by zach 16y ago
Ah, just like the old days where companies were happy to virtually pay customers to make a purchase.
Then again, cost per acquisition via ads is inching up to $10 anyway. That, and with that company they're always in the shadow of having a $200+ valuation per user, it sorta kinda makes sense.
But if you're looking for a "the bubble is back" indicator, this is as good as any.
- minouye 16y agoIf the cost of acquiring an active user (signup + purchase) is close to $10 per user on other marketing channels, why is this promotion a bad idea? Seems like a pretty creative move if they have the excess marketing spend. I've seen a ridiculous amount of LivingSocial ads on Facebook, Google, etc., etc. and the deal today was what made me finally sign-up (I've been using Groupon for a while). Yeah, that's anecdotal, but I wouldn't be surprised if the promotion makes sense when they look at the LTV of the new users they get today.
- zach 16y agoI'm not saying it's a bad idea. It's a good idea but it is from the late-90's playbook of user-acquisition desperation, which is perhaps concerning. It's more expensive than $10 per new user since all existing users also get the deal, though. I also signed up after hearing about it and I never joined either. It's going to be interesting to see how wild this gets. Not that Groupon will retort, just in how high these numbers will go by tomorrow morning.
- pchristensen 16y agoThis has nothing to do with a bubble. I work for Groupon and now LS has my email address. If that's worth $10 to them (and Groupon's numbers suggest that it is), then it's money well spent.
- hyperbovine 16y agoI thought the same thing. It's like 1999 all over again.