Congrats to all companies who participated in the recently concluded Ad:Tech Sydney Digital Marketing Show 2012. Once again the leading event for the digital marketing and advertising community in Australia and New Zealand showcased great innovation.

A lot of renowned companies as well as new comer in the tech and digital industry shared their new technology and services. To name a few:

    -      EA SPORTS
    -      Commonwealth Bank of Australia
    -      WakaNetwork
    -      Forrester Research
    -      Vodafone Hutchinson
    -      Citi
    -      NOKIA
    -      Google Australia & New Zealand
    -      Samsung
    -      Deals Direct
    -      Canon Australia
    -      LinkedIn
    -      The Nielsen Company   

See you all tech enthusiast to AdTech’s next stop which will be in Melbourne, Australia this coming March 28 and 29, 2012.

In my previous post Putting A Cap On Vouchers, I stressed how important it is to limit the number of deals to run. It will help local merchants not to get caught up with high potential loss in running a daily deal.

As I surf the net today, I stumbled upon this very interesting and informative case study and a guide to making daily deals work for your business. Author Emily (of dealupa.com) emphasized 4 must-have elements to designing a profitable deal: (read from original source)

1. Expiration Date – Set the last day of your deal to a slow day...
   
2. Quantity – Know the capacity limits of your business...
   
3. Price – Determine the minimum price to cover cost...
   
4. Terms/ Restrictions – Offer deal for new customers only...
   

The Dealupa.com author also added a case study wherein she laid out a sample computation to have a profitable deal offer as well as deal offer with high potential loss. Check it below:

How to price: (read from original source )
COGS - Cost of Goods Sold
ACS - Average Customer Spend

1. Offer Price - COGS > $0  or
2. ACS - Value of Offer + Price > COGS

Maximize Overspend:
Rules:
1. Overspend = ACS - Value of Offer
2. Value of Offer < ACS

Know Your Capacity:
%Utilization = X%, Customers/month = Y
Rules:
1. Quantity Available (per month) < Y/X
2. Cap on Offer = (Y/X) * (#of MOnths)