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notseamus · 4819 days ago · link · · parent · post: Groupon has spent about as much on advertising this year as Visa and Time Warner Cable.
Mostly on Megavideo.com telling me that somewhere in Kent has half price flowers for a day. I've never been convinced by it, but it's turning a profit somehow.
lessismore · 4819 days ago · link ·
These flowers wouldn't happen to be tulips, would they?
Actually they don't turn a profit.
>At the end of the summer, Groupon announced that in spite of revenue gains, it was still showing staggering net losses of $102.7 million for both the first and second quarter of 2011, a figure that was nearly three times the $36 million loss from Q2 2010. Their strategy is essentially to take their investment rounds and go 'all in' on advertising to boost their subscribers as much as they possibly can. I suppose then the plan will be to cut the that down once they have a critical base of subscribers established to bring good revenue in. That's the theory anyway. I think they are in the act of imploding. They've lost billions in valuation in the lead up to their IPO, which was postponed.