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Summary:

Weddings and related lifestyle company The Knot (NSDQ: KNOT) has long relied heavily on e-commerce in addition to revenues from its print an…

Wedding Bouquet
photo: Events By Elaine

Weddings and related lifestyle company The Knot (NSDQ: KNOT) has long relied heavily on e-commerce in addition to revenues from its print and online content. Now, the company is looking to cut out the middlemen and create a Groupon-like deals program. In addition to capitalizing on the social shopping trend, the group deals offering at its WeddingChannel.com Deals is also seen as a way to complement its local content efforts by attracting more small businesses to its sites in what a rep described as “the ultimate cost-per-action” ad model.

While a number of media companies, most recently McClatchy (NYSE: MNI), have struck deals with Groupon, The Knot felt it could create its own version. Right now, Groupon is trying to grow its audience, and as a rep for The Knot explained, the company already has a significant audience already. The previous thinking was that brides weren’t necessarily looking for discount deals online for their wedding shopping, but with the economy still weak, and the idea of social shopping becoming more mainstream, the company felt the timing is right.

The move towards group shopping follows the WeddingChannel.com Reviews site that was unveiled last spring as The Knot’s “Yelp for nuptials.”

  1. You say that TheKnot “has long relied heavily on e-commerce”, but relied seems too strong a characterization as only ~15% of gross profits are derived from e-commerce (“merchandising” as they label it). The majority of their revenue comes from advertising/sponsorships (~60% of revs).

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  2. Mark – Perhaps David meant revenue growth has begun to shift away from an advertising/sponsorship model to e-commerce. Therefore, future revenue growth relies on the e-commerce segment. This strategy would make sense given the current state of mass medium advertising (ie TV, radio, newspapers, and magazines), and the fact that over 80% of newlyweds begin their wedding plan search online.

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  3. Did TheKnot develop this site or did they work with a 3rd party?

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  4. Jamie, The Knot used a “third party,” but they have not identified the outside company.

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