Ever since groupon launched in November 2008 “discount” sites have sprung up here there and everywhere. Not surprising considering recession has hit the globe and everyone is looking for a way to continue the lifestyle they have become accustom too.

Groupon was an instant success with the unique concept of a deal a day which was “on” or not depending on the number of buyers. The discounts were big, or at least appeared to be and the site was slick. So it didn’t take long for Google to sit up, notice Groupon and slap a $6 billion offer on the table. Not bad for a site that had been in existence for 2 years.

When Groupon turned down Google it was as sure as the iPad2 selling out on launch day that Google would set about developing their own version of the discount site. This is to be called Google offers.

Google Offers BETA is starting in Portland, Oregon and punters can get 50% off or more at the “places” they love. Places being the operative word. Google have developed their Places feature integrated into their search and maps, to enable companies to offer discount.
The difference for google this time is the emphasis is not just on the company to set up the deals using an online form. This time to compete with Groupon Google will have to actively work with companies to set these deals up.

The daily-deal concept requires a large sales force, which talks to businesses, sets pricing strategies and plays a role in setting up the discounts. Groupon has 2,600 employees working in sales all of which are by now honed at setting up these deals.

Never one to be left behind now-a-days Facebook also feels it has a role to play in the let’s-get-money-off landscape.
Facebook are going to leverage their “check-ins” feature to enable Facebook deals.
My first reaction to Facebook entering this arena was here we go again. Can’t Facebook leave anything alone? But after a bit of thought, I actually think Facebook has the best model which has the ability to offer something a little unique.

Facebook deals will open up a more flexible discount system, where the likes of a local pub could offer discounts if you check-in yourself and 10 other friends. This boosts sales at local businesses, encourages people to get together to take advantage of the offer and means you can take advantage of the discount there and then. No waiting, noloo signg your voucher and no deal expiring.

I don’t think Google offers or Facebook deals will be the end of Groupon. Groupon has the head-start in this sector and its dedicated to offering the best discounts and that’s it. It’s not trying to be a jack of all trades, it’s just trying to be a master of one.

The size of both Google and Facebook mean they can set up devisions dedicated to their discount dealings. But what doesn’t change and will only get harder and harder as both these giants grow is the flexibility and ability to change and adapt to the market that a smaller company has.

I believe Facebook’s offering is more unique and will prove successful in the long term. But this doesn’t mean the death nail for Groupon as there is room for both. Facebook for the more spontaneous discount deals and Groupon for the more planned discount treats.

The one offering I can’t see coming out on top is Google offers. It wasn’t first to market and it’s just not unique enough.

Maybe you should have bid $8 billion for Groupon eh Google?

I remember working in Wilkinsons in Melton Mowbray and on my break wondering over the road to Blockbuster video for some chocolates. I remember hiring Apollo 13 and Braveheart on VHS in 1995 (maybe 96 – it’s hazy!) from the very same Blockbuster store and quite a bit later (plus many movies later) in 2001 hiring my first Playstation 2 game.

Blockbuster is a fantastic brand – from it’s very simple ticket stub logo to it’s global coverage of its stores and online websites. It may not have been the first company to offer movie rental, but it was certainly the first chain to offer it on such a scale. The Blockbuster concept of a “great night in” which seems to have been lifted shamelessly by Dominoes, altered the way we enjoyed our time infront of the TV at night. Blockbuster cunningly offered up popcorn, chocolate and sweets alongside movie rentals so everything you needed was there in one place.

The first Blockbuster store in the UK opened in March 1989 (Walworth Road, London) and rapidly expanded to it’s 650 stores and over 5,000 staff it currently has in the UK today.

Recently though, the global presence of Blockbusters has suffered, the TV campaigns have halted and stores have closed down. So what went so badly wrong, that has led Blockbuster to recently announce they are working towards bankruptcy?
In my opinion, one word sums up what went wrong for Blockbuster, Innovation.

Blockbuster probably didn’t realise it, but they operated in an area of technology. Or at least an area which has been affected so dramatically recently with the introduction of DVD, blue-Ray, games consoles and more importantly the Internet.

Blockbuster have always reacted to the market and since their launch have never ventured into markets until they are mature.

The killer nail has been the likes of LoveFilm and NetFlix, which have revolutionised the way in which we consume film. Sky Box Office was bad enough for blockbuster, but at least they could be rest-assured they would have more recent films on offer.
Blockbuster.co.uk was launched in 1996! So they were very quick to adopt online. They even offered online rentals as early as 2002, but the one thing they have not been able to master is streaming video. If they had took a risk and been the first to offer streaming, even before home broadband was really good enough for it, with the strength of their brand they would have led in a market that will generate millions in the uk alone.

Just think of the advertising revenue online video streaming will generate once it is commonplace. Blockbuster could have had a slice of that and I would be writing a very different blog.

In the UK all is not lost for Blockbuster. It is a separate company to the US Blockbuster and is not yet staring down the barrel of bankruptcy. It is however, up for sale for a mere £50m!

Problem is, a large portion of the £50m will get you the 650 stores – which to survive is the exact thing Blockbuster don’t want to retain. They want to build on the brand, offer online streaming of movies and pioneer in the integration of targeted advertising online.
To compete with the likes of Netflix is now going to be an uphill battle for the UK Blockbuster, but it’s by no means an impossible battle.

I for one hope it’s something someone somewhere takes on. It will be a real shame if the Blockbuster brand is sent to the great big branding bin in the sky.

Inside Microsoft HQ:

Mich Matthews (VP of marketing) – Ok guys, we have a pretty impressive smartphone that we’ve worked pretty damn hard on and I reckon we should let people know it exists. What-da-ya-reckon?

Steve Ballmer (Microsoft CEO) – Good catch Mich, that’s why I pay you $280k+ let’s get our best guys on this baby right away. We need our ducks in a row on this one, we need an xbox success, no repeat of vista… Ok!

Mich – Well, let’s fly some kites, get some serious blue sky going on in here. What made the xbox such a success and vista such a… Um… a…. Well not such a success?

Steve – We never make bad products, it must have been the marketing budgets. How much did we spend marketing xbox?

Mich – $100m

Steve – and vista?

Mich – $500m

Steve – Ah. Vista must have been bad. I hope windows phone 7’s better.

————-

Although Microsoft are reported to be spending $400m on the launch of windows phone 7, this doesn’t ensure it’s success. However, it does show you Microsoft are serious about its new smartphone and by spending serious marketing budget it’s guaranteed every man and his dog are going to hear about this one.

It’s also interesting how close the budgets are between the vista launch and that of windows phone 7. Although when you consider the desktop market is in such decline and the smartphone market is enjoying such growth, it does make sense. Smartphone sales are expected to outstrip those of the desktop by next year, so for me Microsoft have set their budget about right.

The right amount of spend is so important, let’s take the $100m budget of Verizon and Motorola on the original Droid smartphone compared to the non-existent marketing budget for Google’s Nexus One. The Nexus One was a better handset with better software, but was outsold by the Droid – marketing made the Droid a success, simple.

It shows you can have a slightly inferior product, but through marketing tell people repeatedly that it’s good and they will believe you! Apple have been doing it for years… It works! Of course I jest a little, Apples products are damn good, but in all honesty are they the best out there? Or are we blinded slightly by the Apple razzmatazz of it’s marketing campaigns?

Windows phone 7 now has every chance of success. The marketing $’s behind this device plus the fact it isn’t going to be a poor (vista) product is why this could really shake up the smartphone market. This smartphone will support Office, Windows Live services and have the Zune music store. This smartphone will have an innovative UI not a clunky Windows Mobile platform UI. We’re sure to see a Microsoft app store, multitasking and notifications. We’re also going to experience Microsoft making the most of the Xbox Live brand within the handheld for gaming.
The final aspect will be the community. Developers have jumped at the chance to unleash their talents on both the iPhone and Android platforms. If they do the same with vigour for the Windows phone 7, there may be no stopping this new kid on the smartphone block taking the lead.

Microsoft have been quiet recently and has almost slipped into the underdog style status when compared to Apple and Google. Something a decade ago we would never have imagined. We also would never have imagined feeling slightly sorry for Microsoft, but I think there is a new public perception towards them, after all, we love the underdog.

I’m predicting the Windows Phone 7 will be a huge success and with the troubles Apple have had with the iPhone 4, it’s going to make for a very interesting battle!
Most of all though, I’m looking forward to Microsofts marketing campaign for the new phone, I hope they really do fly those kites and make it one to remember!

The launch of facebook places is not only significant in the fact that it shows as a company facebook is continually developing and looking for ways to expand it’s platform, but it is also significant in the fact it shows they can take any new idea which has been thought up by them or not and integrate it into facebook to open it up to the largest community on the web.

Facebook places is a way for users to “check in” to locations so their “friends” can see where they’ve been. Users can also add notes against places so their friends can see what they thought of it, what deals they may be able to get there etc, etc… just general info.

All in all, a good idea. Yes. But not an idea of some bright young developer within facebook HQ!

This idea happened to be the brainchild of Dennis Crowley who was named one of the “Top 35 Innovators Under 35″ by MIT’s Technology Review and Naveen Selvadurai.
This pair launched foursquare in march 2009 and now has over 3 million users.
Now, 3 million users all of a sudden doesn’t sound like that many. But that is only because of the monster that is facebook. The majority of websites would be more than happy and may even open a bottle of bubbly at the fact they’ve attracted 3 million users to their website.

The point here is that facebook can take any new idea, such as foursquare, integrate it into facebook and instantly expose it to an audience far greater than anyone else can imagine.

Therefore facebook faces no competition.

Although foursquare’s user base has apparently risen since the launch of facebook places, this will surely not continue. I can only guess this is due to the fact people are now more aware of the concept of “checking in” and are therefore searching for this and discovering foursquare.

Apparently facebook have been developing this for 8 months, so it took them only 9 months to track foursquare’s growth and decide to copy it’s idea.

It’s a shame, but I really feel we won’t see a new successful concept independently run, not integrated into facebook and grow enough to compete with the social giant.
It’s also a shame that more people hadn’t discovered foursquare first. As the 497,000,000 users that are members of facebook and not foursquare will think – cracking idea facebook… Well done.

In 3 months how many real twitter followers can I get… that actually want to follow me?

I blog. As you can tell from the fact you’re reading this – I blog. Therefore I have something to say. It may not be interesting to everyone, but I’m sure there are many that would find it a good read.

My point is that there are millions on facebook updating status’s or on Twitter… tweeting, when they really haven’t got that much to say. But those same people have 1000’s of friends (or fans if they have a group/fan page), or have thousands of followers, even though they just re-tweet or post the same post automatically through a third-party api which merges keywords together works a bit of black magic then automatically follows 500 people. Point is, all these people are creating a following when they really have little to say.

I’ll admit, it’s not always the case. There are some that put in the work. Publish original content – that’s actually interesting – and deserve to be followed. But for every single one of these people, it seems like there is a hundred that’s playing the system in some way.

I want to see if it’s possible to gain real twitter followers that are actually interested in what I have to say.
To do this I’m starting from a certain point, setting a certain goal with certain commitments and measuring exactly what happens.

• The date (as the observant amongst you would have seen from the top of this post) is 22/07/2010
• My Twitter account is http://twitter.com/nessasmith
• I have 83 follwers,
• I’m following 53 people,
• I’ve tweeted 38 times,
• …and I’m listed in 7 lists.

This is by all circumstances a pretty average twitter account.

My mission is to generate a thousand real twitter followers in 3 months.

The guidelines

• No use of any third party APIs that automatically follow, automatically purge, automatically tweet, automatically boot up my computer – logon to twitter and send out tweets!
• No re-tweeting irrelevant content
• I can blog about whatever I like
• I can tweet about my blogs
• I can tweet about content related to my blogs
• I start today
• I publish a twitter follower count on October 22nd 2010 (hopefully 1083+)

That’s it – let’s see how it goes!