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Survey shows daily deals sites most effective marketing channel for service-based SMEs

Announcement posted by Jump On It 08 Jun 2011

MEDIA RELEASE

June 2011

Survey shows daily deals sites most effective marketing channel for service-based SMEs

Survey figures released today by leading daily deal sites Jump On It and LivingSocial highlight the strength of this new media channel for small to medium service businesses.

In the survey of 211 merchants who listed deals with Jump On It and LivingSocial, more than 95 per cent said advertising with daily deal sites brought more customers through their doors. Eighty per cent of respondents said daily deal sites brought the most new customers of any channel when compared with other marketing channels such as Google search advertising, local newspaper advertising, Yellow Pages advertising, direct mail, radio, TV and PR.

The survey also revealed:

69% of respondents rated daily deals sites as the best channel they had used so far or at least above average compared to the other alternatives.

80% said they would use daily deal sites again for their marketing

58% said that they will stop using traditional print advertising in local newspapers.

41% said they would stop using Yellow Pages advertising

33% saying they would stop using direct mail to households.

Colin Fabig, CEO of Jump On it and LivingSocial Australia says, “This survey of our merchants reflects the general industry and shows the strength of daily deals sites as the leading medium for local merchants to reach new customers.”

Colin says, “These findings make sense as the daily deal site channel is a fully measurable and accountable media channel. There are no risks and upfront costs to the service; it’s no wonder that small businesses are moving their marketing spend from traditional channels into this medium.”

Other benefits of using daily deals sites reported by respondents include: generating word-of-mouth referrals (for 68 per cent of respondents), increased brand awareness and exposure (89 per cent), increasing business during quiet times (62 per cent) and repeat bookings (53 per cent).

About Jump On It & Living Social

Jump On It launched in May 2010, backed by $1.3m funding from a consortium of private investors led by Roger Allen (Chairman of Allen and Buckeridge) and Nextec Capital. In November 2010, Jump On It received $5m funding from Living Social, the world’s fastest growing coupon site with a presence in over 250 markets, and launched Living Social in Australia. In 2010, Amazon and a variety of the world’s leading VC funds have invested in excess of $575m in Living Social. So popular are the sites over 25 million shoppers worldwide have already signed up to their combined database and millions of vouchers are sold every month.

To view today’s deals, visit www.LivingSocial.com and www.JumpOnIt.com.

FOR INTERVIEWS/ IMAGES & MORE INFO:

Julia Nekich | The Ideas Suite | m 0410 796 800 | t (02) 9279 3330 | e jnekich@theideassuite.com.au