Marketing to Women: Five New Facts about Groupon and Other Daily Deals
May 31, 2011 § Leave a Comment
How many daily deals do you get every day? I get way too many and read most of them. I suspect that you do too, and you have already figured out that daily deals are not going away. It’s a part of the thrift economy, a gift from the recession.
This year the category is set to hit $1.246 billion in U.S. consumer spending, and could grow to $6 billion by 2015, according to BIAKelsey. As of March, there were 200+ daily deal sites in 178 cities reaching 102 million people. The leaders are Groupon and LivingSocial, but heavyweights Google and Facebook are getting into the space. Groupon, the No. 1 daily deal site, has swelled from 2 million subscribers to 85 million over the past year and a half, while second-place LivingSocial went from 120,000 subscribers to 28 million.
Update, June 2, 2011: Well, here’s another fact. Groupon has filed for a $750 million IPO from the Securities and Exchange Commission. The S-1 shows that Groupon brought in nearly $650 million in revenue during the first three months of 2011, which is about 21 times what the site made in all of 2009. (Revenue in 2010, according to the filing, were just over $710 million.) It seems that its unbridled growth has yet to make it profitable. Read more in The Atlantic.
Who uses Daily Deal Sites? Research firm Morpace found that 40.2% of 18-34 year olds used Groupon, compared with 34.1% of 35-54 year olds and 23.2% of those 55 and older. BIA/Kelsey found that US adult internet users subscribe to an average of three daily or weekly shopping emails or newsletters.
But do they read the emails? Research from Yahoo! Mail and Ipsos OTX MediaCT says Yes, subscribers say they regularly read them. And of those who subscribe to at least two, 61% say they read all of the messages? Why? Because it’s new news. There is something competitive in our shopping genes that causes us to want to be the first to find a deal. In fact, one out of five accesses daily deals several times a day!
Are daily deals passed along? Daily deals are passed along at least weekly by 45% of subscribers. And 22% pass along daily. The immediacy of the deals creates this timely need to share the deal.
Are the subscribers getting tired of the emails? Gosh, no. About 60% of respondents of the Yahoo study subscribe to more of these emails than last year, and nearly half were still excited and expressed a “can’t wait” attitude towards the arrival of the daily deals.
And do they look at them on their mobile phones? Not only do they look at them on their mobile phones, but they also purchase the deals. In a Q1 2011 survey of its Wi-Fi Media Channel users, JiWire found that 44% made a purchase from a social shopping deal site, such as Groupon or LivingSocial, at least once a month. Those ages 25-44 were most likely to purchase a deal. And sharing is huge in this study as well. More than six in ten mobile wi-fi respondents share local deals with their friends.
What can we expect to see in the future? We are beginning to see lots of spin offs, specialty and niche sites. This trend will only continue. Obviously Facebook and Google will offer new derivations. And mobile usage will only continue to grow, as will the location social media applications such as FourSquare and Gowalla. Guess there’s a new mayor in town! It’s Daily Deals.
Tagged: Daily Deal Pass Along, demo for daily deals, Facebook, FourSquare, future of daily deals, Groupon, growth of daily deals, Jamie Dunham, JiWire, LivingSocial, Morpace, The Lipstick Economy, Twitter, who reads daily deals?, Yahoo