DoubleClick and Google Vets Launch Groupon Cloning Platform

  |  March 9, 2011 

agentsmithHow much fragmentation can the daily deals niche take? Group Commerce, led by a trio of online marketing veterans, plans to find out.

The New York-based company has created a white-label platform for publishers and other media marketers that want to implement a branded Groupon clone.

So far, The New York Times, DailyCandy, Thrillist, and Meredith Corporation have signed on to support deals on its platform.

Founded by former Google and DoubleClick executives David Rosenblatt, Jonty Kelt, and Andrew Glenn, Group Commerce has raised $8 million from these capital investors: Spark Capital, Carmel Ventures, Lerer Media Ventures, and Bob Pittman, an MTV Networks founder and now chairman of media and entertainment platforms at Clear Channel.

According to a recent report by BIA/Kelsay, the investment money could be well spent. The Chantilly, VA-based research firm estimates the daily deals niche will be a $4 billion industry by 2015. In 2010, BIA/Kelsey found daily deals services captured $873 million. If correct, its projections indicate a 35 percent compound growth rate during the next four years.

Groupon and LivingSocial are the clear leaders in a space involving around 200 deals-based brands. New deals sites for specific demographics like moms, hunters, and golfers seem to be popping up daily, and it's safe to wonder how much fragmentation can occur before the niche's bubble bursts.

A partial list of current services demonstrates how much the category has exploded:

Mom Deals

-MommaBargains

-Daily Deals for Denver Moms

-Plum District

-Zulily

-Mini Social

-Mamapedia

-"Deal"icious Mom

-Gaggle of Chicks

-Totsy

Golf Deals

-The Early Birdie

-14 Stix

-98 Main

-Caddies Bag

-Deal A Day Golf

Baby Deals

-Baby Steals

-Baby Half Off

-GreenBabyBargains

-Eco Baby Buys

Jewelry Deals

-Bfiz

-Bling Daily

-Daily Gem Deals

-Oriental Watch Site

Women's Clothing And Accessories Deals

-Brandlet

-Handbag Chick

-RedTagCrazy

-deeli

-Rue La La

-Gilt Groupe

-BeyondtheRack

-BillionDollarBabes

-Jasmere

-Modnique

-HauteLook

Hunting Deals

-CamoFire

-Outdoor Daily

Amara Mastronardi contributed to this report.

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ABOUT THE AUTHOR

Christopher

Christopher Heine is a senior writer for ClickZ News, covering social media, sports/entertainment marketing, retail, CPGs, and e-mail. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist. You can follow him via Chris_Heine on Twitter.

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