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Groupon Will Cut Marketing to Get Profitable
Posted By Abe Brown On October 10, 2011 @ 7:10 pm In Internet and Online Business,Online Marketing | No Comments
Groupon  will “significantly” cut its marketing efforts in the future after dismal returns. The daily deals site says the change comes as a result of “changes in subscriber economics, achievement of subscriber saturation levels in various markets or a determination that subscriber growth objectives can be satisfied through alternative means,” according to new SEC fillings.
Groupon has faced consistent criticism over its losses. It still isn’t profitable, and in the past, tried several creative accounting metrics in its IPO filings to abate the contention of a faulty business model. Before now, the company has had to spend more money to add customers to its email lists. The cut in marketing could help it achieve profitablility.
Read more at BusinessWeek .
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URL to article: http://technology.inc.com/2011/10/10/groupon-will-cut-marketing-to-get-profitable/
URLs in this post:
 Groupon: http://www.groupon.com
 BusinessWeek: http://www.businessweek.com/news/2011-10-07/groupon-says-it-plans-to-significantly-cut-marketing-spending.html
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