The company that owns and distributes Valpak coupons to millions of homes around the U.S. is acquiring one of the biggest online coupon websites.
Cox Target Media Inc., told The Associated Press it is acquiring Savings.com and its U.K.-based sister site, Savoo.com.
“What it means for the Valpak brand ... that blue envelope that’s so familiar? It’s going to make that experience better,” said Michael Vivio, the president of Cox Target Media, which is based in Largo, Fla.
Cox Target Media is part of Cox Enterprises, as is Cox Media Group Ohio. Businesses under the Cox Media Group Ohio banner include the Dayton Daily News, WHIO TV and Radio, the Springfield News-Sun, Middletown Journal and Hamilton JournalNews.
Vivio said Wednesday that in the future, customers that receive local deals in the Valpak coupon envelope will also get them from national brands. Eventually, the deals will also be available on a phone app and through other social media sites. Company officials say the acquisition expands both Valpak and the website to encompass traditional, digital, social and mobile platforms.
The acquisition means a shift in the advertising revenue model, Vivio said.
Valpak makes money in a traditional, print media way, he said: businesses pay for the ads in advance and hope there’s a corresponding sales bump.
With affiliate marketing sites like Savings.com, Vivio said, the business model is different. Companies send the affiliate marketing sites coupon codes or data feeds to sites that drive traffic to their websites. When a transaction is completed, the company pays a commission to the affiliate site — meaning the company doesn’t spend a dime until a customer buys something.
“The acquisition of Savings.com creates a new business model,” said Vivio. “(Companies) will be able to get the eyeballs and mass reach print delivers using the kind of business model that works in affiliate marketing.”
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