Marketing to Women: The Demographics of Groupon and Living Social
June 14, 2011 § 3 Comments
There is an exponential explosion of daily deal sites across the United States. You don’t have to look very far to see it. The local publications, moms groups, charity groups, and email groups are all getting into the action, along with regional and national clones. I get information on a new one every day. Even with the countless new options, Groupon and Living Social still account for more than 90% of all visits among group buying websites tracked by comScore.
As with any new media, demographics become a major part of the marketing decision when reaching out to deal driven women audiences. It seems that many of these sites have very different niche audiences. The demographics of Groupon and Living Social testify to the differences.
The Differences between Groupon and Living Social
Comscore has compiled some interesting comparisons of the Groupon and Living Social audiences.
Geography: Groupon is stronger in the Midwest and Pacific regions of the country, while Living Social does better in the East.
Where They Advertise: Both companies believe in investing to acquire new customers, but they each use different online media tactics to do so. Living Social places 73% of their ads in the top five online properties (Google, Facebook, AOL, Microsoft sites, Yahoo) while Groupon does the exact opposite. Groupon targets smaller sites with only 31% of its ads on the top five. The cost of acquiring users has been talked about in the media recently because of Groupon’s pending IPO. These acquisition costs have kept these companies from actually making a profit.
What This Means for Marketers. Marketers need to ask the right questions when considering a daily deal site. Is the deal for a national or local market? Does it fit my marketing area? What is your objective in advertising – acquiring new customers, highlighting a new service, or revitalizing your market? Who are you targeting – younger women or older women? Is your product an impulse item like restaurants or beauty items which seem to attract more users? How are you going to convert these new customers when they come in your store? Are there other services or products that you would like to introduce them to? Is there a bounceback strategy?
To Infinity and Beyond. The current use of Groupon for retail products and services is getting ready to move into a new market that has traditionally been served by the big coupon players Valassis Communications and News Corp.’s Smart Source. This week Groupon announced it is joining two Boston marketing-services and analytics firms to test a grocery coupon with Springfield, Mass.-based Big Y. Using supermarket loyalty cards, shoppers can get a $39.99 seafood grill pack for $24, with the deal loaded onto their loyalty card and reflected at checkout. General Mills is going also testing a Groupon deal in select markets, bypassing the retailer to ship directly to consumer. The wild west of daily deals and its effect on retail just continues to grow in unexpected ways.
Tagged: Advertising, Business, Comscore, Daily Deal sites, Google, Group Buying Sites, Groupon, growth of daily deals, Jamie Dunham, LivingSocial, marketing, marketing to women, The Lipstick Economy, United States