hyperlocal advertising model using twitter couponing

© 2009 Domus Consulting Group. All rights reserved. Confidential and proprietary.page 1

Hyperlocal Advertising Business Model using Twitter

Patrick KitanoManaging PrincipalDomus Consulting Group

© 2009 Domus Consulting Group. All rights reserved. Confidential and proprietary.page 2

AGENDA

1. The new business of Twitter coupons

2. Examples of hyperlocal couponing models

3. Parallels to media time advertising

4. Coupon clickthrough analytics

© 2009 Domus Consulting Group. All rights reserved. Confidential and proprietary.page 3

In the past, local merchants relied on local newspapers, coupons and Sunday circulars to advertise to their community

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Online couponing via Twitter is easy and free

In June 2009, we introduced the Twitter for local advertising concept at http://www.slideshare.net/pkitano/twitter-for-local-advertising

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Online hyperlocal couponing has new business models that prove consumer coupon demand

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From the consumer perspective, couponing is not considered “advertising”.

In context, it’s considered “free money”

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Mobile couponing is the next big trend

Photo source: http://bit.ly/b9isk4

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Mobile couponing is already commonplace in the Far East, and is poised for expansive growth in North America

Data source: http://bit.ly/9t3CKm

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Twitter is the ideal network for hyperlocal couponing

1.Simple to implement - just tweet

2.High mobile usage 3.Twitter is well

positioned for hyperlocal networking

4.Tweets can be #hashtagged and is indexed by Google

5.Easy to forward coupons to others via retweets

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Twitter has the same “time slot” media buy functionality as TV and radio

Twitter is local broadcast media

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For example, a restaurant can develop a Twitter campaign to tweet out lunch coupons at 11:00am and dinner coupons at 5:00pm

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The difference between Twitter and TV/radio is the advertiser can measure “clickthroughs” on its content links instantly and customize campaigns on the spot

(Analytics shown for demo purposes only)

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What’s missing?

The hyperlocal community platform to serve local coupons

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Online newspapers are often distracting with flashy advertising - it’s an Old World model

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Breaking News city sites broadcast real time community news in a clean, non-commercial format (www. BreakingSFNews.com)

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Breaking News can display coupons on a website, a Twitter feed and a Facebook feed

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Each Breaking News tweet average 15-24 clickthroughs in every city

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The Local Advertising Model

Based on confirmable metrics, Breaking News can guarantee a daily /monthly clickthrough rate

3 tweets daily3x15 guaranteed

clickthrus =45 clickthrus daily

45 clickthrus/day x 30 days =

1,350 clickthrus monthly

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Guaranteeing a minimum 1,350 clickthroughs on customized Twitter coupons monthly from a primarily local audience is a value proposition to local merchants

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PennySaver coupons and other local advertising venues can’t guarantee that clickthrough rate

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How much would a local merchant allocate monthly for advertising on Twitter coupons?

1,350 clickthroughs

monthly guaranteed

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We want to know.

Domus Consulting Group is conducting a study on this hyperlocal advertising model.

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If you’re a local business or ad agency in:

San JoseSan Francisco Bay AreaLos AngelesSeattleChicagoTorontoBergen County NJAtlantaDallas

Please contact us at:breakingSFnews@gmail.com

(we also welcome partnership inquiries)

© 2009 Domus Consulting Group. All rights reserved. Confidential and proprietary.page 33

Thank you

Patrick KitanoManaging Principalpat@domusconsultinggroup.com(415) 573-2481