Dealradar Offers Coupon-Clutter Fix
BATAVIA, Ohio (AdAge.com) -- As Google Offers prepares to do battle with Groupon and Amazon's Living Social, one player could really clean up: Dealradar.com, a Chicago-based startup, aims to help frugal consumers clear the clutter from their email boxes by consolidating ever-proliferating offers from major coupon sites plus dozens of lesser players in one daily message.
Dealradar, launched last year and headed by Dan Hess, a veteran of ComScore, Information Resources Inc. (now SymphonyIRI) and Tribune Interactive, now operates in 70 U.S. cities along with 17 more in Canada, the U.K. and Australia.
"We aggregate close to 1,000 deals a day from close to 200 sites," Mr. Hess said. His company gets what he calls "a modest commission" every time any of the sites acquires a new customer via DealRadar, but without his company having to field a sales force to call on local businesses.
DealRadar still has a long way to go, with just under 12,000 unique visitors last month, per Compete, compared with 15.6 million for Groupon and 7.1 million for LivingSocial. But traffic is only part of the story. A network assembled by its parent company, Local Offer Network, of web publishers with "tens of millions of visitors" also uses DealRadar's offer feed, which in turn fuels the daily deal sites and DealRadar, Mr. Hess said.
Dealradar is also working with traditional-media companies or their offspring, such as Metromix, owned primarily by Gannett Co., to help them create their own daily-deal sites, Mr. Hess said.
Even though DealRadar clearly stands to benefit from the low barrier to entry, Mr. Hess isn't one of those betting Groupon is ultimately doomed by it. "The barrier to entry is low," he said. "But the barrier to success is high."