05:39am | Monday, 19 March 2012

Nova network launches group buying site

0 Comments | Growth Strategy | PRINT | | By Michelle Hammond

Radio network DMG Radio Australia has made its foray into the increasingly crowded group buying market, launching a website that offers daily deals to its 40,000-strong database.


DMG Radio Australia comprises eight FM radio stations and one AM station, including Nova in Sydney, Melbourne, Brisbane, Adelaide and Perth, Sydney’s 95.3FM and Melbourne’s 91.5FM.


In addition, DMG Radio operates Adelaide’s FIVEaa and Star 104.5 on the NSW Central Coast, as well as digital stations Novanation and Koffee.


Today in Brisbane, it launched a group buying website titled getinquick.com.au, enabling local and national businesses to spruik their wares to Nova audiences.


The website will be promoted on-air and online across the Nova network.


Subscribers will receive an email advising them of daily deals and, once minimum deal numbers are reached, the deal will become active.


The site will feature a maximum of six daily deals offered to the current 40,000-strong database.


A competition to win Lady Gaga tickets is expected to encourage new subscribers.


According to DMG Radio’s group digital director Rebekah Horne, DMG timed its entry into the group buying category following a lengthy review of the current market.


“Our key learnings have placed DMG Digital in a powerful position to launch a new group buying experience,” Horne says.


“Our goal is to be the leading group buying site in Australia for 18 to 39-year-olds, offering quality targeted deals to our highly engaged audience.”


The news comes after technology analyst firm Telsyte revealed the group buying market grew to be worth $498 million in 2011, and is expected to grow an additional 30% in 2012.


According to Telsyte, the group buying market is expected to exceed $600 million, reaching $1 billion no later than 2015.


“Increased focus on physical product sales in group buying will change the face of the industry,” Telsyte senior research manager Sam Yip says.


This year, Yip says continued market growth will also be fuelled by the refocusing of group buying sites on driving customer loyalty.


“In 2012, loyalty programs and targeted deals will continue to drive sales, while leading sites will enhance their mobile commerce strategies and expand their offerings,” he says.


While there were more than 80 sites in operation in 2011, Telsyte expects that the barriers to entry will increase in 2012 and some sites will fail due to lack of scale.


This year, Yip says the local group buying sites will battle it out with the multinational players, meaning bigger discounts, better quality deals, more offers and more loyalty programs.