Hungry for online deals

Written by: Madhur

On Jan 19th, 2007

One of the most prevalent business models in Internet companies is advertising. Here is a look at different types of business models that exist on the Internet around advertisements. The basic aim of advertisements is to generate leads for the advertiser. The beauty of CPC (cost per click) advertising on the Internet is that the vendors (advertisers) need to pay only when they actually get the traffic, which makes their marketing costs much more accountable compared to traditional banner advertising. Realizing the ROI that this promises to the advertisers, in the US, people have set up companies that solely do this – generate leads for online vendors. Of course any website that has google ads already does that. But let’s talk about sites that are dedicated to generating leads without focusing on any other content at all. One of the categories of sites that is quite popular in the US markets is the “deals” sites. These sites publish the latest and the greatest deals and discounts regularly, some updated throughout the day. People hungry for deals keep coming back to the site to check out the latest deals. Because of the timely nature of these deals, the daily traffic volume is high and since these sites publish hot deals that tend to expire soon, the clickthrough ratio is also very high. FatWallet is the big daddy of all such deal sites. There are dime a dozen other deals sites like edealinfo.com, deals2buy.com and more.

Naturally the trend is already beginning to catch on in the Indian markets. If you look at the google trends data for “online deals” India is not too low down on the list. So we had a chat with a couple of players – allindiadeals.com (publishes deals in online shopping space), tripmela.com (publishes deals in online travel space) – to get insights into what they are doing to get the latest deals on their sites and to drive the hungry for deals traffic on their sites:

Sources of data
: Both of these sites use a combination of feeds from vendors and handpicked deals from variety of websites.

Freshness of data: allindiadeals updates the site once a day while tripmela does that 2-3 times a week.

Business model
: The source of revenue for both of these sites comes from a mix of CPC based listings plus google ads on the site.

Marketing: Both the sites realize the power of SEO and are doing things to promote their site high up in the organic search results. allindiadeals uses the power of social networks like orkut and other online communities to spread the word. tripmela has used techniques like press releases and Search Engine Marketing to buy sponsored listings in search engines. tripmela also delivers weekly newsletters to the inboxes of the registered users and a lot of customers seem to like this feature. (Tip: Doing RSS based subscription could also be quite useful)

Problems they are facing
: This is probably the most interesting data that we got:
1. allindiadeals says initially people were not really familiar with the concept of online deals, although with the competition increasing among the online merchants, people are starting to get it now.
2. Both players mentioned that a lot of the online vendors do not understand the power of CPC based advertisement, as a result of which they are not willing to give data feeds. This is starting to change as well, with the increasing competition and increasing advertising budgets for online companies.

Bottomline
It’s clear from our conversation that a lot of merchants still do not understand the concept of lead generation and CPC advertising. We think as the market evolves, lead generation phenomenon will pick up steam – online vendors will realize the importance of CPC based advertising and they will start providing feeds of their data. As a result, we will start seeing more players who will get into lead generating business in the form of comparison shopping, vertical searches, affiliates and deals publishing sites.

Sphere: Related Content

Entry Filed under: allindiadeals,ecommerce,marketing,online deals,online retail,online travel,tripmela

12 Responses

  1. 1. Vivek Garg said on January 20th, 2007 at 12:18 am

    I agree that Indian consumer do not completely understand the concept of a deal. They are mostly discounts or never ending sales item. We need to have coupon codes that expire. or deals with limited time frame or on limited quantity of items to capture the impulse buying of online shoppers. Once these type of deals proliferate, we will see more action in online deal aggregators trying to give you the best deals. Add forums exchanging online coupons. It looks like we will get there as online shopping increases its share.

  2. 2. vishal mehta said on January 23rd, 2007 at 6:59 am

    hi,
    i really liked this site http://www.indbay.com.it‘s a weblog which published best deals,cool and unique product listed on ebay india,the big daddy of online shoppng in india

    http://www.indbay.com

  3. 3. Vivek Garg said on January 23rd, 2007 at 7:57 pm

    looks like indbay is manually filtering the best deals on ebay for their blog. Could this be automated?

  4. 4. Nitin said on January 24th, 2007 at 4:34 am

    hi,
    The online shopping scene in India is on uphill and with the increase in number of online shopping sites its becomes difficult for people to keep track of every site. So many times I have purchased things from one site and then realized that same deal was available at cheaper price at other site. So site like allindiadeals.com comes very handy (I have made purchase using information from allindiadeals and it helped me).
    I fully agree with ur view that merchants in India should start posting there leads on such sites because in future people will be going to site like http://www.allindiadeals.com and not directly to ebay or rediff.
    I think in future these sites should come-up with more refined options for searching products/deals over the web.

  5. 5. vishal mehta said on January 25th, 2007 at 12:48 pm

    hi ,
    no this is not automated,infact our team searches thru ebay for cool and unique product,best deals and post them on indbay

    http://www.indbay.com

  6. 6. Nirmal said on January 25th, 2007 at 5:14 pm

    Being a great fan of online deals, one of the things that I have realised is that there is alwaya a better deal available somewhere on some site. This is where sites like allindiadeals.com have a bigger impact. With a daily update of the best possible deals, most of the times their deals are the best of the lot.

    The online user base in India is increasing at a brisk rate and given the number of Indians in countries like US and UK, the importance of deals and online shopping is spreading with word of mouth in India.

    The area where these sites might be able to make a bigger impact if by providing personalized services so that users do not have to search for wat they are looking for but these sites alert them every time something of their interest is available for less.

  7. 7. vivek garg said on January 26th, 2007 at 12:47 am

    Vishal. Thanks for sharing the information with us. I am wondering how is this going to scale in longer run when you want to add multiple merchants.

    Did you go to these merchants asking for feeds? Anyplans of crawling etc ? How was their response ?

    Vivek

  8. 8. vishal mehta said on January 28th, 2007 at 6:10 am

    hey even http://www.ndbay.com is one of it kinds

  9. 9. Indian Online Deal Aggregator - New channel for E-Retailing « Business India 2.0 said on January 29th, 2007 at 10:12 am

    […] http://ileher.com/2007/01/19/hungry-for-online-deals […]

  10. 10. Rajesh said on May 8th, 2007 at 12:10 am

    Take a look at http://www.discountsindia.com

  11. 11. Guru said on June 30th, 2007 at 1:51 am

    Thanks for sharing information on deals. Here is a great site for deals, coupons http://www.elivedeals.com.

  12. 12. SuperFlier said on July 31st, 2007 at 11:19 am

    http://www.ixigo.com is a travel deal aggregator.

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