Retailers shift their ad spending from TV, radio and print ads to digital ads.
AmazonLocal now offers online discounts to consumers in five states.
The new daily deal service from Amazon.com Inc. has begun offering discounts to consumers in Chicago. AmazonLocal today was offering $89 worth of dinner, drinks and dessert at Real Tenochtitlan Restaurant & Bar. As of about 1:30 p.m. Central time, 350 consumers had bought the deal.
Amazon, No. 1 in the Internet Retailer Top 500 Guide, made no announcement about the expansion of AmazonLocal to a new city, nor did Amazon respond to a request for comment. The AmazonLocal site notes consumers in Southern California, parts of southern Florida, Boise, ID and the Seattle and Tacoma areas in Washington already received daily deal offers.
Amazon launched its daily deal service in June just as Groupon filed for its initial public offering. Groupon rival LivingSocial—which last year received a $175 million investment from Amazon—is helping Amazon to source local deals, a LivingSocial spokeswoman has said.
Consumers who click to buy an AmazonLocal deal create an Amazon account or log into their existing one, and can make purchases with payment cards already on file with the online retailer.
Meanwhile, Groupon today was offering consumers in Chicago a deal good at Jewel-Osco grocery stores: $9 for $15 worth of ice cream treats. As of about 1:30 p.m., 1,292 consumers had bought the deal.