STV launches local Daily Deals service

Scottish broadcaster STV has launched a new Daily Deals service for local businesses across Scotland as a competitor to Groupon and Facebook.

The new service delivers locally-targeted deals via daily email alerts, with consumers able to register online for free at the STV website to access the discounts. Daily Deals launches in Glasgow and Edinburgh, but STV said that the service will roll out to other Scottish cities "in due course".

STV's classified team is working with a range of local businesses in Scotland's two biggest cities to secure deals, including restaurants, beauty salons, adventure day organisers and hotels.

The launch of Daily Deals will be supported by a promotional email and online campaign, along with TV ads in September. The service is powered by STV's US technical partner Analog Analytics, using the Bigger Better Deal software.

STV chief executive Rob Woodward said: "Daily Deals will provide an exciting platform and potential new customer base for our advertisers while allowing us to offer fantastic deals providing excellent value to the consumer."

Mike Ferguson, head of classified at STV, added: "This brand new venture from STV delivers a fantastic opportunity for our advertisers in Glasgow and Edinburgh to showcase their services and share their best deals with the STV audience. The service will cover a wide range of sectors and target both men and women, offering great deals for everyone."

Online discounts and deals have become one of the biggest growth areas in the digital industry, with numerous companies rushing to enter the lucrative market.

Groupon, the most high-profile player, has experienced incredible growth since it launched in 2008 and is now thought to have revenues close to $2bn (£1.23bn). The company rejected a $6n takeover bid from Google last December, and instead secured $950m in financing from eager investors. LivingSocial, another daily deals service, also received a $175m cash injection from online retail company Amazon last year.

Services are often based on users 'checking in' at certain locations via social networks to access the discounts. In January, social media giant Facebook launched its own daily deals service, enabling its 600m-plus users to check in while accessing brands to earn rewards.

Speculation also emerged in February that Sir Richard Branson's Virgin Group was considering the launch of a "daily deals" online coupon service to go head-to-head with Groupon.