Irvine, California (PRESS RELEASE – January 13, 2011) – Local.com Corporation (NASDAQ: LOCM), a leading local search site and network, announced the acquisition of iTwango L.L.C., a technology platform that enables group-buying of discounted daily deals by consumers from local businesses.
“We believe that the group-buying model is a powerful new development in local advertising that effectively closes the gap between online research and offline transactions, and therefore represents an important step in demonstrating to small businesses the immediacy and value of local online advertising”
iTwango is an early stage group-buying platform that allows advertisers to submit discounted offers to consumers who receive those geo-targeted offers daily via email. Group-buying is the purchasing of discounted or special offers from a business on the condition that a minimum number of buyers are found.
Small business advertisers have shown strong interest and satisfaction with group-buying as an advertising medium. A leader in the group-buying space recently reported that 97 percent of its SMB advertisers would run another promotion. In addition, a group-buying deal aggregator also found that among a small sample of daily deal advertisers, 93 percent would run another deal promotion. Consumers are also benefiting from the discounted offers from small businesses, with visits to a sample of group-buying websites and aggregators increasing 610 percent between August 2009 and August 2010, according to Experian Hitwise.
“We believe that the group-buying model is a powerful new development in local advertising that effectively closes the gap between online research and offline transactions, and therefore represents an important step in demonstrating to small businesses the immediacy and value of local online advertising,” said Heath Clarke, Local.com chairman and CEO. “We expect that iTwango will be an exciting new product for Local.com and our extensive network of regional media publishers, who have the feet-on-the-street sales forces to capitalize on this emerging local advertising segment. We will be investing into our group-buying technology platform and anticipate rolling out our first products towards the middle of 2011.”
iTwango enables advertisers to set minimum and maximum deal participation (known as tipping points), thereby enabling tighter control of their exposure than other daily-deal sites.
Other features of iTwango include:
- Easy consumer registration and purchase with automatic identification of consumer location
- Consumers can select their geographies of interest, view deal of the day and browse all deals
- Easy self-service sign-up for small business advertisers
- Multiple listing and location-based advertiser offers
- Supports a network model, whereby deals can be imported or exported via API and also distributed to publishers via API, RSS feeds and widgets
- Deal providers can also be publishers within the network, allowing regional media publishers to distribute deals exclusively on their own sites
- Deal providers can allocate deal inventory to specific publishers
- Publishers can have a private label interface for consumer registration, purchase and voucher printing
- Multiple currency formats
iTwango will undergo rebranding and is expected to be distributed widely across the flagship Local.com site and network of over 1,000 local and regional media sites, as well as over 100,000 hyperlocal sites under Local.com management. iTwango is also expected to be made available to Local.com’s regional media network on a private label basis.
Local.com Corporation (NASDAQ: LOCM) owns and operates a leading local search site and network in the United States. The company uses patented and proprietary technologies to provide over 20 million consumers each month with relevant search results for local businesses, products and services on Local.com and over 1,000 partner sites. Local.com powers over 100,000 local websites, and tens of thousands of small business customers use Local.com products and services to reach consumers using a variety of subscription, performance and display advertising and website products.