Retailers shift their ad spending from TV, radio and print ads to digital ads.
Competition is increasing in the hot market of offering deals over the Internet from local retailers.
They're only available for now in Boise, Idaho, but the deals from Amazon.com Inc.'s AmazonLocal are another big deal in the business of offering daily deals from local retailers over the Internet.
The top online retailer says AmazonLocal will e-mail subscribers deals for at least 50% off purchases from nearby retailers. Participating retailers will be marketed "front and center with the Amazon brand," and merchants pays only a referral fee on sales, Amazon says. "We're working quickly to bring great deals to our customers all over the country," Amazon says, noting that it has more than 120 million active customers.
Search giant Google Inc. recently began signing up consumers in Portland, Oregon, for Google Offers, a similar service for local merchants. Google Offers will expand next to New York City and the San Francisco Bay area, Google says.
Facebook plans to launch Facebook Deals, adding new competitors to leaders Groupon and LivingSocial.
The online daily-deal industry could generate $2.67 billion in sales in 2011, according to a recent report by Local Offer Network Inc., which sells advertising and technology services to group-buying sites.