hyperlocal advertising model using twitter couponing

© 2009 Domus Consulting Group. All rights reserved. Confidential and proprietary.page 1

Hyperlocal Advertising Business Model using Twitter

Patrick KitanoManaging PrincipalDomus Consulting Group


AGENDA

1. The new business of Twitter coupons

2. Examples of hyperlocal couponing models

3. Parallels to media time advertising

4. Coupon clickthrough analytics


In the past, local merchants relied on local newspapers, coupons and Sunday circulars to advertise to their community


Online couponing via Twitter is easy and free

In June 2009, we introduced the Twitter for local advertising concept at http://www.slideshare.net/pkitano/twitter-for-local-advertising


Online hyperlocal couponing has new business models that prove consumer coupon demand


From the consumer perspective, couponing is not considered “advertising”.

In context, it’s considered “free money”


Mobile couponing is the next big trend

Photo source: http://bit.ly/b9isk4


Mobile couponing is already commonplace in the Far East, and is poised for expansive growth in North America

Data source: http://bit.ly/9t3CKm


Twitter is the ideal network for hyperlocal couponing

1.Simple to implement - just tweet

2.High mobile usage 3.Twitter is well

positioned for hyperlocal networking

4.Tweets can be #hashtagged and is indexed by Google

5.Easy to forward coupons to others via retweets


Twitter has the same “time slot” media buy functionality as TV and radio

Twitter is local broadcast media


For example, a restaurant can develop a Twitter campaign to tweet out lunch coupons at 11:00am and dinner coupons at 5:00pm


The difference between Twitter and TV/radio is the advertiser can measure “clickthroughs” on its content links instantly and customize campaigns on the spot

(Analytics shown for demo purposes only)


What’s missing?

The hyperlocal community platform to serve local coupons


Online newspapers are often distracting with flashy advertising - it’s an Old World model


Breaking News city sites broadcast real time community news in a clean, non-commercial format (www. BreakingSFNews.com)


Breaking News can display coupons on a website, a Twitter feed and a Facebook feed


Each Breaking News tweet average 15-24 clickthroughs in every city


The Local Advertising Model

Based on confirmable metrics, Breaking News can guarantee a daily /monthly clickthrough rate

3 tweets daily3x15 guaranteed

clickthrus =45 clickthrus daily

45 clickthrus/day x 30 days =

1,350 clickthrus monthly


Guaranteeing a minimum 1,350 clickthroughs on customized Twitter coupons monthly from a primarily local audience is a value proposition to local merchants


PennySaver coupons and other local advertising venues can’t guarantee that clickthrough rate


How much would a local merchant allocate monthly for advertising on Twitter coupons?

1,350 clickthroughs

monthly guaranteed


We want to know.

Domus Consulting Group is conducting a study on this hyperlocal advertising model.


If you’re a local business or ad agency in:

San JoseSan Francisco Bay AreaLos AngelesSeattleChicagoTorontoBergen County NJAtlantaDallas

Please contact us at:[email protected]

(we also welcome partnership inquiries)


Thank you

Patrick KitanoManaging [email protected](415) 573-2481