Sunday, August 7, 2011

Groupon Grows

            Social media can now be identified as a driving force for small and large businesses alike. In the entertainment world, social media has given individuals the access not only to great entertainment events, but also the opportunity to create their own entertainment events. In many of these social media sites today, people can find amazing deals and monetary savings on entertainment. Movies, music, shows, and everything in between can now be accessed in one’s local area with ease. Amongst the most popular social media sites, deal site Groupon has managed to double their usage by way of intense marketing and good finance management. Capitalizing on the appeal of their own business offerings, Groupon has made a statement to the world that they are here to stay. The news of them doubling their users indicates the intense rate of growth the company is experiencing.
            Now with 115 million users, Groupon has announced that they are discontinuing the usage of a financial measure they have been referencing but now see now unfit and unattractive to stock holders. This metric, called Adjusted Consolidated Segment Operating Income (ACSOI), excludes marketing costs. Groupon spent 4 million last year in the first quarter, and this year 208 million in the same bracket of time. Getting more customers is a priority to keep the business successful, and so marketing is directly critical.
            Groupon is extremely important to entertainment now. Although it is not entertainment based, it is definitely entertainment focused. From concert ticket discounts for top notch performers, party-planning, to club drink package deals, Groupon is now playing a significant role in people’s lives when it comes to going out and engaging in entertainment related activities. As the economy seemingly is causing the masses to be focused on frugality, Groupon gives this opportunity.




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