Daily deal coupons, the concept that matched local advertising to social media, may not be the booming business that everyone expected.
Skepticism has sunk in after Groupon, the Chicago-based company which filed papers for a potential $750 million initial public offering, was revealed to have spent more than twice of what it took in during 2010. Plus, the number of newer companies dedicated to similar offers has apparently resulted in diminishing returns for all.
Yet, rival ventures have continued to launch, partly in response to criticism that the larger operations don't do a good job of targeting specific demographics. But many have been criticized for flooding inboxes with too many discounts for laser hair removal or tanning salons.
DealFrenzy, a new Canadian site scheduled to launch next month, has promised to be the "next generation Groupon-like revenue program," with partnerships that include outlets like Yogen Fruz, Yogurty's and Jamba Juice.
Zozi, a San Francisco-based company,Read More »from Growing pains come to light in daily deal online coupon business