After a long pause, there sounded a splash in the clam water of deal aggregation when Local Offer Network (LON), said to be the pioneer of deal aggregation, went to acquire Raleigh-based deals aggregator Redeemio.com providing shopping channel to the online buyers in 190 locations across US and Canada.
LON attracted the attention of observers in online media as its outspoken chief executive officer Dan Hess ruled out the impending correction in daily deal industry in shape of ‘consolidation’ with indicating the hot pursuit of up-market products including travel deals by bargain seekers.
“The money is still there, meaning that margin compression hasn’t undercut the business models of many deals providers as expected,” Jed Williams wrote in a blog entry at BIA Kelsey, a research maven that has foreseen US deals market kissing $4.2 billion mark by 2015.
Referring LON’s data, Williams opined buyers would pine for “clothing and accessories, health/medical/dental, and travel/hospitality” and not just collecting coupons at random.
Another considerable changing pattern, he highlighted, was increase in deal duration to an average five days. That implies a window of opportunity opened up for a comfortably lengthy hiatus. This cannot be interpreted as the demise of daily deals since deals are still to be relayed on daily basis.
Travel deals are popping up from different discount platforms because of the rising tendency of travelers in booking room nights or travel tickets online via flash sites, quick response codes, or group buying websites.
Back to the LON’s recent purchase, the acquisition was aimed at to increase the numbers of experiences for its members and ensure sustainable growth, according to the company’s statement.
LON is a provider of technology solutions to group buying industry and engaged in formulating revenue sources for publishers (DealWire), designing of ads of best deals (VoucherPro), and provision of deal shopping tool (Dealradar.com).
Its lastly mentioned venture aggregates hot deals from various daily deal companies for buyers in 130 markets across four countries.
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