Test launched in New York; national rollout expected.
While some consumers may need another daily deals email in their inbox like they need a hole in the head, Priceline is taking its shot. The 13-year-old travel brand last week began sending a "tiny" list of New Yorkers offers from local merchants, said Brian Ek, spokesperson.
"By nature, our customer base comes to Priceline because they are looking for the lowest price, they are looking for deals and bargains," he told ClickZ News. "So we think there might be a natural fit, and we're going to find out."
Ek said Priceline is using the white label deals provider Group Commerce, which is handling the ad sales with New York merchants. On Friday, the offers came from Monster Pizzas ($20-for-$10 voucher) in Greenwich Village, Green Apple Dry Cleaners ($40-for-$15), and lessons from Manhattan Kayak ($160-for-$80).
Priceline isn't asking New York recipients if they want to receive local merchant deals, even though most likely signed up for offers from airlines, car rentals, and hotels. Simms Jenkins, CEO of Brightwave Marketing and a ClickZ email marketing columnist, questioned the strategy of transferring permission from a list built on one style of offer to a different kind.
"It's not a surprising situation," Jenkins said. "Senior management often see email as a cash-generating machine without regard for best practices or how it relates to a brand…It's lazy email marketing, but it will still work."
Although New York is currently the sole market available, a dropdown menu on the site uses "Coming Soon" copy suggesting Atlanta, Boston, Chicago, Dallas, Los Angeles, Miami, Philadelphia, San Francisco, Seattle, and Washington D.C. will soon be in the mix.
It's certainly not the first time Priceline has attempted to break out of the travel category with plays in other niches. For instance, 11 years ago, the company made an ill-fated attempt at allowing consumers to bid on gasoline prices.
Priceline's daily deals move comes one month after competitor Expedia.com partnered with Groupon to offer the latter's email audience travel and hospitality discounts. Orbitz also reportedly plans to soon enter the ever-crowding deals space with a product of its own.
According to a March report by BIA/Kelsey, 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 at least 200 deals-based brands. But notable tech names like Facebook, Google, Foursquare, and Scvngr loom as possible contenders. And new deals sites for specific demographics like moms, hunters, and golfers seem to be popping up constantly, 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:
Women's Clothing And Accessories Deals
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Sept 5 to take advantage of Super Saver Rates!
Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. 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.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
September 17, 2014
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT