Toronto-based Postmedia Network has entered the growing group buying space with the launch of a new online service called SwarmJam.
The service launched earlier this week across Postmedia’s 12 daily newspaper markets, with the company’s 22 community newspaper markets coming on-stream yesterday. Initial SwarmJam deals ranged from $20 for a $40 gift voucher at Home Hardware in Windsor, to $12.50 for a $25 gift voucher at a local pizza restaurant in Edmonton.
In development since September, the SwarmJam service already has “hundreds of deals in the pipeline” said Alvin Brouwer, president of business ventures for Postmedia Network.
“I think it’s going to be very successful for us,” said Brouwer. “I think we’re really well positioned to do a great job acquiring vendors in this space and promoting the deals–which will allow us to build our bidder base.”
SwarmJam joins a host of other online group buying entities that includes Groupon–which was this week identified as a possible acquisition target for Google–the newly launched Kijiji Daily Deal, Metroland’s WagJag and Montreal-based Tuango.
Asked about the increased competition in the group buying space, Brouwer said there are so many advertisers looking to get involved in performance-based advertising and customer acquisition that many are turned away by existing group buying services.
SwarmJam also features what Brouwer called a “progressive pricing” model, in which a discount increases the more people sign up for it. The service is also offering a member rewards program in which members earn points that can be applied towards products and cash rewards every time they make a purchase.
Brouwer said that Postmedia intends to build the service through ongoing communication with its newspaper readers and an online audience totaling 8.1 million, as well as its “substantial” e-mail subscriber list. “We think we’ve got a lot of assets in play that can really build our list quickly and get the message out there,” he said.
Plus, he added, Postmedia has an 800-person sales force that can sell the service to local businesses across the country.
The SwarmJam launch was supported by full-page ads in the National Post, ads on Postmedia websites including Canada.com and Dose.ca, Google ads, banner ads and an e-mail acquisition campaign.
A mobile app is currently in development and is expected to launch within the next two months, said Brouwer, who arrived at Postmedia in September from Metroland Media, where he helped launch the WagJag service.
