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Summary:

Head to a major local newspaper site and chances are you’ll see an ad for a group-buying site like Groupon or LivingSocial. But, while some…

Star Tribune
photo: The Deets

Head to a major local newspaper site and chances are you’ll see an ad for a group-buying site like Groupon or LivingSocial. But, while some newspapers — including, notably those owned by McClatchy, as well as the Washington Post — are partnering with existing group-buying startups in order to feature daily deals, the Star Tribune in Minneapolis, along with a few others, are launching their own daily deals services, using their existing sales teams.

The Star Tribune‘s service, which launched last week, is called STeals and offers one exclusive offer every day, which goes into effect if enough people sign up. The technology is powered by a startup called Shoutback, which has also been providing the white-label platform that the San Diego Union-Tribune has been using to run its own daily deals service which debuted in April.

The Star Tribune‘s Jason Erdahl tells MinnPost that in launching STeals, the paper is betting that it can leverage its existing relationships with local advertisers to “better build deals and integrated sales programs” than the daily deal startups can. Erdahl tells us that the company hopes to launch targeted deals soon “based on the knowledge we have about our users.” He says the newspaper believes it can generate about $500,000 a year from STeals.

The Star Tribune is joining a growing list of publishers that have decided to cut out the daily deal middle man. Wedding company TheKnot, for instance, launched its own Groupon-like program earlier this month, as did WhitePages.com. And, just today, yellow pages publisher Yellowbook said it would launch a group-dealing service called Weforia in three of its markets.

  1. Cutting out the middleman is essential for newspapers and others who want to get into this business. As more competitors arise, revenue splits with merchants (and thus margins) are going to be squeezed, and all of a sudden that 5-10% that’s going to a platform provider feels like real money

    Coming Monday from The Arizona Republic, and powered by an owned and operated (and scalable) platforn: http://www.DealChicken.com

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  2. GordianProject Monday, August 30, 2010

    Dealo.com let’s anyone, including newspapers, create their own daily deal site, for free, so it’s likely that we’ll continue to see this trend.

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  3. Daily deals are proving to be a great way to save some money, so it’s no wonder more and more companies are trying to take advantage of this trend. Group buying can also help businesses save a lot money by searching out pertinent sales and taking advantage of them.

    Another great online resource for daily deals is http://www.dailydealpool.com , which compiles a list of local sales and delivers them to your e-mail inbox daily. This way, you or your business will never miss out on a great deal that might help you save money!

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