The latest entry in the crowded daily deal market, dominated by Groupon and LivingSocial and a host of other recent entries, including Google, Facebook and AT&T is publisher Gannett. The newspaper chain announced Tuesday it is expanding nationally a daily online deals business they initially launched in 10 markets, including Cincinnati, OH; Detroit, MI; Indianapolis, IN; Knoxville, TN; Nashville, TN; Phoenix, AZ; Reno, NV; Rochester, NY; St. Louis, MO; and Washington, DC. Gannett expects to introduce the service to over 50 additional markets in the US by the end of the year.
Gannett’s strategy is to push the daily deal service in the local media it owns, both online and traditional using the considerable local sales force of its newspaper and broadcast properties that knows the local markets, the communities, and their respective needs.
Deal Chicken is similar to other online daily deals services. People sign up to get a daily email that alert them to specific discounted deals for area retailers or restaurants. The discounts are then activated based on the number of subscribers who purchased the coupon. Gannett takes a 50% cut – although it varies – and passes the rest on to the merchant.
With Deal Chicken, Gannett is trying to diversify its revenue base beyond print advertising. The publisher of USA Today and 81 other U.S. daily newspapers has been battered by a downturn that has been particularly tough on its industry. Source
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