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The How and Why of Advertising on Groupon

Using Groupon to advertise your business is a great way to build brand awareness and sell any excess items. Before creating a deal on their website, conduct research to determine if this is the right choice for your business. Learn more about what Groupon is, what kinds of businesses find more success from it, what kind of benefits you can expect and how to advertise on Groupon.

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What is Groupon?

Groupon is a platform businesses use to publish discounts on their products or services. Many businesses use Groupon because this company has strong brand recognition and is known for posting great deals on their website. Consumers simply sign onto Groupon’s site and sort through different businesses’ discount options on their products and services until they find one that’s most appealing to them.

When businesses post their deals, they simply fill in their business information and details about the discount and pick a desired launch date. When you create your business’s deal, Groupon provides discount suggestions based on your product and similar deals their users typically choose. They usually recommend discounting your product around 40% and 90% off its original price to be more appealing to potential customers. Groupon handles the purchasing process from there.

After the deal is live, Groupon collects the revenue earned from your product or service sales and distributes them to you every 30 days. They usually take around 50% of the profit you receive from selling your product on their service. You don’t need to pay any upfront costs to advertise onGroupon.

What kinds of businesses Groupon works best for

Deciding if Groupon is a service your business would benefit from often depends on the type of business you own. Businesses that find the most success from using Groupon include:

  • Local small businesses:Many local businesses do well on Groupon because many consumers use it to find services in their area. Groupon even has a category called “Nearby” that lets users find companies based on their locations to help them discover local businesses.
  • Businesses with a high sales volume and lower-costing products:Since the products you post on Groupon usually feature significant discounts, it’s well-suited for companies who already experience a high sales volume. It’s best to feature your deal on a product that costs less to make.
  • Companies in the service industry:Groupon is a great platform to use if you’re offering a service. Advertising a discount brings more people in whenever you’re experiencing slow periods with fewer customers at your store.
  • Entertainment venues:If your entertainment venue is experiencing low ticket sales, you can easily get more people to come into your venue if you post a discounted price on Groupon.
  • Hotel and travel businesses:Some hotels, resorts and airplanes have open vacancies or seats they need to fill soon, so they advertise these availabilities on Groupon.

Related:What is the Definition of Branding in Marketing?

Benefits of using Groupon

Advertising your product on Groupon helps you sell more products and build awareness of your brand. Common benefits include:

  • Reach and attract a wider audience:Many users visit Groupon each day to find new products and things to do at discounted prices. They may find your discount and want to learn more about your company by visiting your website or purchasing the Groupon voucher.
  • Sell items you need to get rid of:If there are any products you’re having trouble selling, advertising them on Groupon for discounted prices can help you move your inventory quicker. This way, you’ll get rid of products you no longer want to sell in your store and will still make more of a profit than you would if you threw them out.
  • Build relationships with customers:To keep customers visiting your business, you can provide regular discounts on Groupon or offer deals that spread out over several visits. For instance, you can offer 30% off their next three dinners. This encourages customers to come back and gives you a chance to build a relationship, which may lead them to thoroughly enjoy your business and continue returning without discounts.

How to advertise on Groupon

Signing up to sell your business’ deals on Groupon is quick and simple. Follow these steps to advertise your business on Groupon:

1. Pick the type of deal you’re offering

The center of the Groupon Merchant page will feature a prompt that says, “How can we help your business?” You’ll find choices of deal types below this prompt that are catered toward the type of business you have. You’ll click on the option that best describes your business. These include:

  • Local deals: Discounts for local businesses
  • Getaways:Deals for hotels, resorts, flights and travel packages
  • Live:Ticket deals for live events like concerts, theater shows and festivals
  • Goods and retail:Deals for businesses selling products or services from anywhere

2. Add your business’s information on the form

After you click on the respective icon, you’ll be directed to a screen with a form requesting more information. You’ll input your business’s details, like your address, phone number, website and location.

3. Create your deal

You’ll be directed to a page listing suggestions for the deal type your business is offering. It’ll display 10 to 15 options based on the business category you chose. Once you select one, the website will create a template to help you build your deal.

4. Input the price of your deal and its discount

You’ll then see a new screen asking you to enter your product’s original cost before applying the discount. Then, you’ll input the discount you prefer for that product. You’ll see Groupon provide suggestions for a discount percentage that they believe will perform well based on the product’s price and past deals on similar products.

5. Upload an image to represent your deal

To help your deal get more attention and look visually appealing, you can add an image. Groupon has photos available in their database for you to choose from, or you’re able to upload your own. Try to use horizontal images that are around 700 by 420 pixels to get the best image resolution and display results.

6. Draft a summary of your business

The next screen will ask you to use fewer than 115 characters to write a brief summary of your business. This helps visitors better understand your business. Explain what makes your business stand out from others and the unique benefits your products or services provide.

7. Submit the Groupon business questionnaire

Groupon will then provide an optional questionnaire asking more about your business, like what makes it unique, why you opened it and what about your business feels rewarding. Use 300 characters or fewer to answer each question.

8. Select the fine print details and your launch date

You’ll have an option between several pre-made fine print details regarding your product offerings. Pick the option that applies to your business. If you’d like to include extra details about your business in the fine print section, you can contact Groupon’s Merchant Support department to request it. Then, view and electronically sign the merchant agreement.

9. Get your deal approved

Your deal will then be given to Groupon’s team for further approval. Their team responds to merchants within three business days after receiving the deal request. They’ll send you an email telling you if your listing needs to be changed, then you’ll receive a notification of the deal going live on the date you pre-selected when creating your listing.

Frequently asked questions about advertising on Groupon

How much does it cost to advertise on Groupon?

There are no upfront costs required to advertise on Groupon. They will take 50% of the profit you make on each product.

Is Groupon worth it for a small business?

Groupon is a great solution for small businesses if they’re newer and trying to boost their brand awareness. Advertising on Groupon helps visitors discover new companies and encourages them to visit the business’s store. As a small business owner, you can get more visitors into your store to purchase your product after posting your deals on Groupon.

Why do businesses use Groupon?

Many businesses use Groupon to promote and build more awareness of their company. Groupon helps businesses gain access to a wider audience, so it increases the likelihood of more people seeing and purchasing their products.

Do businesses make money from Groupon?

Businesses can make money from Groupon, but it’s not necessarily a significant profit. This is because you’re offering large discounts on your product, and Groupon takes 50% of the revenue you make on each item. However, you still get more money for your products than you would if you simply got rid of items rather than promoting them for discounted prices.

Some businesses thrive off of Groupon and often see a large influx of customers after posting deals on their website. It’s important to conduct research on the product first to determine if it’s the best option for your business.

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