Coupon website giant RetailMeNot.com’s stock soared 38% today as first day of IPO rally, leaving many companies questioning their marketing strategies as one hopeful coupon service website announces plan to sell.
RetailMeNot’s business model is to uniformly aggregate digital coupons from a broad spectrum of retailers nationwide and posts those coupons on its website and smartphone application. Commissions from the retailers are collected after an online shopper makes a purchase with one of the featured digital coupons.
According to The Wall Street Journal, national retailer Toys “R” Us concedes the viability of RetailMeNot. “We’ve had great success with these sites and consider them an important part of our overall marketing strategy,” said Toys “R” Us Inc. spokeswoman Kathleen Waugh, who added that RetailMeNot was one of “our largest partners.”
RetailMeNot drew 24.2 million unique monthly visitors to its websites, on average, during 2012. Ancillary business model of coupon creation and submission has been formed by a savvy Colorado start up and has already geared up to provide for retail and corporate clients wanting to capitalize on the growing online coupon trend.
According to Brian Wilkinson of YourCouponGenie.com ,”We created the service after seeing substantial demand from frustrated businesses needing a coupon creation and submission service.”
“We serve an amazing variety of clients from Mom & Pop stores to Fortune 500 companies wanting to get their special offers in front of massive amounts of online visitors,” Wilkinson said during a recent interview.
If RetailMeNot’s IPO is an indicator of where the market is going, the digital coupon space isn’t showing signs of slowing down anytime soon.
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