What does it say that Groupon, the break-out group-buying company that came to fame online, is turning to TV to continue building its brand?
With a swift talk-to-the-($6 billion)-hand, Groupon turned down an acquisition offer from Google. But as it eyes more global markets and aims to connect with a wider swath of consumers—while also fending off mounting competition from the likes of Living Social and other daily-deal clones—Groupon is turning to Madison Avenue.
In the coming weeks, expect to see the social e-commerce trailblazer make its foray onto TV, including pregame spots in the Feb. 6 broadcast of Super Bowl XLV. You would have seen Groupon in the big game, according to two industry executives, but it was shut out: that inventory, which nets as much as $3 million a pop from advertisers, had sold out by October.
Groupon has been ramping up by quietly tapping a variety of agencies to handle various marketing duties. It’s expected to partner with MDC Partners‘ Crispin Porter & Bogusky for traditional advertising, and, considering that shop’s reel of creepy (Burger) Kings, talking mannequins and Volkswagen Beetles, Groupon appears to have no intention of playing it safe.
It has also added a media agency of record in Publicis Groupe‘s Starcom. Over the Christmas holidays Groupon CEO Andrew Mason sent a note to cable networks alerting them to the new relationship. And last month, Groupon tapped Havas-owned Euro RSCG, Chicago, for help with customer-relationship marketing strategies, a move that Groupon director of marketing John Becvar last month said was part of an effort to “test different programs with our growing base of Groupon subscribers.”
It’s a decisive shift in marketing strategy for the Chicago-based company, which has been among the best case studies for the power of word-of-mouth marketing, having grown in 2010 from one country to 35, with nearly 400 million subscribers. But a little over two years into its existence, it seems Groupon thinks that “tell a friend” isn’t enough to grow as quickly as it intends. As of last week, Groupon said it’s not yet ready to comment on any of its marketing plans. And agencies declined to speak with Ad Age as well.
But Rob Solomon, president and chief operating officer at Groupon, in November suggested to Ad Age the company was nearing a point where it felt it was time to begin experimenting with what’s now typically referred to as traditional advertising—TV, print, radio, outdoor billboards—to maintain momentum. Said Solomon: “The next level of extending the brand is traditional offline media and techniques to build the brand. If you look at the great iconic brands that have been built on the internet, they all go through that transition, and I think we’ll go through a similar progression.”
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