Wednesday, February 2, 2011

How Groupon Might Change Advertising

"Maybe you haven’t noticed, but media companies have changed their strategy of charging for advertising," says Gordon Borrell, Borrell Associates president. 'If it continues, the business model for media might change forever.'

Group deals have allowed local businesses to offload the risk of advertising onto the media company, Borrell argues. "Advertising has become 'free,' and the media company gets paid only when a sale is made.

"If this continues, it will transform media companies into marketing partners," he argues.

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