Group buying site Our Deal gets investment from Ten Network

Group buying site OurDeal has taken an investment from Ten Network to boost the site’s staff and advertising plans, with the company planning to launch a series of television advertisements following the success of a similar venture by rival site Cudo.

The investment comes as the group buying scene continues to heat up in Australia, fuelled by the success of US site Groupon. Sites including Cudo, Jump On It and Spreets are all taking investments worth millions from media groups and other entities.

OurDeal says Ten Network’s backing will be able to provide a “mass consumer reach” to the company’s already existing network of customers, with television advertisements to begin immediately.

Founder and chief executive Julian Holman says partnering with Ten Network will allow the company to focus more on its target youth market. He previously worked with Ten on a previous venture, the dating site Oasis Active.

“This investment allows us to expand and do everything we had already put in our plan, and that includes staffing and so on. And with the advertising, it’s good for our business partners, they get to be presented in front of millions more people,” he says.

Holman would not reveal the size of the investment. He also said the business is not yet prepared to reveal revenue or subscriber figures, but said the company is growing 500% month-on-month.

The partnership comes after rival site Cudo has launched a similar approach, using daily television advertisements in capital cities to promote its deals. But Holman says OurDeal has a different focus.

“I’m extremely confident with our offering. And I think the investment made by PBL and Microsoft in Cudo only reinforces the group buying strategy and it shows that people are buying these great deals.”

“I’m excited by this prospect, healthy competition is always great, and Cudo, like us, is a great reputable business.”

Equally important to OurDeal is the focus on merchants, who provide all the deals on the site. However, he says rival sites leave the deals open, allowing small businesses to become swamped by the sheer amount of coupons being redeemed.

Instead, Holman says OurDeal caps its deals at a certain amount.

“The capped deals are one part of a greater strategy. We take care of the business and business owners, and instead of sending them 4,000 coupons to redeem immediately, we cap our deals. That is one part of our approach.”

“And we think our guys have a fantastic approach with our merchants, and they are becoming experts in that consultative sales approach.”

This focus on merchants as actually part of Ten’s involvement, with Ten Network chief digital media office Nick Spooner saying in a statement the network was attracted by the company’s approach to working with merchants.

“We were attracted to a partnership with OurDeal due to its distinctive approach, which clearly sets OurDeal apart from its competitors and which we believe is key to its goal of becoming a leader in this industry sector,” Spooner said.

“Chief among its attributes are the strength of OurDeal’s relationships with merchants, its focus on ensuring the quality and appeal of the ‘deals’ offered to members which, in turn, underpins its ability to engage members and deliver a high level of transactions.”

The group buying craze has been fuelled by the success of Groupon in the United States, which Forbes called the fastest growing company ever on the internet, and is valued at well over $US1 billion.

A flood of similar sites has opened in Australia, including Cudo, Jump On It, Spreets and Scoopon, operated by Catch of the Day founder Gabby Leibovich. The site is currently involved in a trade market battle with Groupon.

But Holman says OurDeal will continue to focus on working with merchants to sign up the most attractive deals policy, which he says will bring in more customers.

“The advertisements are going to be sent out to regions immediately like Sydney, Melbourne, Brisbane and Adelaide. And we are also on the ground in the Gold Coast and Perth now, and we’re looking to introduce some deals there soon.”

“Looking forward, we’re also looking at ways we can segment our subscriber base and deliver them the deals that they want. But that’s part of our plan and we will reveal more about that in the future.”