Groupon to cut online marketing spending

Share this article:

Groupon expects to “significantly” reduce its online marketing spending for subscriber acquisitions, according to a regulatory filing made by the daily deals company on Oct. 7.

Groupon said in the filing that it believes “over time” the company's online marketing spending for subscriber acquisition will not generate “sufficiently attractive investment returns due to a variety of factors such as changes in subscriber economics, achievement of subscriber saturation levels in various markets or a determination that subscriber growth objectives can be satisfied though alternative means.”

The company did not immediately respond to a request for comment.

In the first half of 2011, Groupon spent $345.1 million on online marketing related to subscriber acquisition. Overall marketing spending for the period totaled $432.1 million.

Groupon filed to go public in June but reportedly delayed its IPO after the U.S. Securities and Exchange Commission asked the company to revise its accounting metrics, which were derided for excluding subscriber acquisition costs. Groupon revised those metrics in August.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Epsilon Rebrands as End-to-End Marketing Solution

Epsilon Rebrands as End-to-End Marketing Solution

The goal is to flame the perception that technology and creativity live under one roof at the company, says President Andy Frawley.

Mobile Spend Vaults 76 Percent in First Half, IAB Reports

Mobile Spend Vaults 76 Percent in First Half, ...

Overall Internet ad revenues escalate by 15% to $23 billion, also fueled by increased activity in social media and video.

Top 20 Percent Is Twice as Good at Converting as the Rest

Top 20 Percent Is Twice as Good at ...

There are five reasons elite marketers trounce the competition: testing, targeting, spending, mobilizing, and democratizing.