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Groupon Shifts Marketing Spend

Groupon is looking to increase its advertising deals.

Groupon, the internet coupon company that recently launched its initial public offering, is starting to reshape its marketing focus.

MarketWatch reports that the company will stop spending so much on winning new subscribers, and will instead start pounding the pavement for more advertising agreements. In the first nine months of 2011 alone, the company spent $613.2 million on marketing aimed at increasing its email subscriber list, according to the news outlet.

Groupon CEO Andrew Mason said the company was at a point where it was its own competition. "There's no question that the barriers to entry to this business are low," Mason reportedly said. "But the data shows with equal certainty that the barriers to success are quite high."

So far, the company seems to be succeeding in the endeavor to seal more ad sales, according to Reuters. More than 650,000 holiday deals were sold in the shopping weekend following Thanksgiving, the source says, marking a 500 percent year-over-year increase for Groupon.

This will undoubtedly be good news, as the recent IPO's share prices dropped from its November 4 debut price of $31.14 to $17.50 when the Nasdaq closed on Wednesday, Reuters added.