BrandDunk

Branding the World of Sports

Will Groupon be successful advertising at Super Bowl?

Posted by ZA on January 10, 2011

AdAge reports that Groupon made a big media buy in the pregame of the 2011 Super Bowl.  Groupon’s goal is to introduce their brand to a more mainstream audience.  The Super Bowl has an audience of over 100 million people (106 million for 2010 game) which is about 4x the number of customers that Groupon has in North America today.  So the Super Bowl offers big potential, but is it a good move for Groupon?

My rule of thumb is that Super Bowl advertising should be for established brands that already spend heavily in television throughout the year (e.g.- Budweiser, Coke, Verizon, etc) and avoided by those just looking to make a splash.  But in this case I think it is a good move for Groupon because they are already bringing in significant revenue and can use the Super Bowl as an opportunity to give more mainstream credibility to their brand.  Groupon may be able to get some of those people who have heard of them to sign up and buy.  Call it success by association – Groupon will benefit from their exposure right next to mainstream brands. So I give thumbs up to Groupon on this Super Bowl ad buy.

While I think this move helps bring in more revenue for Groupon, the bigger challenge for them remains to offer relevant promotions.  Groupon is the it product for local advertisers and some national (i.e.- Gap).  But Groupon is going to have to continue to offer quality deals, from top merchants, to keep people using their site.  If the quality of the offerings from Groupon slips (which I think it does eventually) then their millions of users will stop buying and eventually stop subscribing to their daily emails.  That imo is the biggest challenge Groupon faces in 2011.

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