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Useful stats from Local Offer Network (LON) that runs the group-buy deal aggregator service dealradar.com… Contact research[at]localoffernetwork[dot]com to request the full report, but here’s what you need to know…

  • The US group-buy market for local deals was worth $1.1bn in 2010
  • The US group-buy market is set to grow 138% to $2.66B in 2011 (NB Groupon’s global revenue for 2011 is forecast to be $3-4bn)
  • The US group-buy market is catered to by 322+ group-buy sites (#sites tracked by LON)
  • In Q4 2010, 22,163 group-buy deals were published to local group-buy platforms in the US – in Q1 2011, this is set to rise to 39,993
  • Food and drink is the largest category for Group-Buy deals (27%), followed by Beauty, Spa & Massage (19%), Fitness & Nutrition (7%), and Sports & Recreation (7%).  The fastest growing categories are Home Products & Services (5%),  Clothing & Accessories (4%) and Kids (2%)
  • The average price for a group-buy deal in Q1 2011 is $42,45up 15% from $36.86 in Q1 2010.
  • The average discount offered on group-buy sites is 53% – with Health, Medical & Dental category offering the largest average discounts (62%)
  • The vast majority (86%) of users of group-buy platforms purchase just one deal voucher per transaction (10% buy 2, 4% buy 3+)
  • The average life of a ‘live’ group-buy deal is 3.1 days, up from 1.9 days a year ago

Of course, the question on everyones’ lips is whether group-buy market growth will be sustainable – deal fatigue is already setting in (and of course dealradar is there to cater to this problem, aggregating deals into one alert); why oh why isn’t there a service that allows users to sign up for alerts to just specific venues/vendors? Personalisation is the future of this market. If ShopItToMe can do it for brands – surely dealradar, yipit or a groovy new startup can do it for specific venues/vendors?

 

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    Cherry Rahtu

    Thanks Paul, the analysis charts are very valuable.

  • Reply
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    pete

    Need to talkto you on skype petros.paparizos@skype. Thanks

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    Dan Morell

    Hello to all,

    I’ve seen some amazing numbers in working with companies from the enableing the daily deal companies to get into the mobile space.

    Granted all these numbers are great but Google, Facebook, and well everyone is getting in on this space. Need to differentiate quickly before the consolidation gets too aggressive. Companies are going to go down, eaten up, and the business model will change by the end of 2011. Daily Deal companies need to start to change quickly. We’ve had great success by taking them mobile and expanding their opportunities to extend their reach, rev centers, and options for clients to use to reach new customers in new ways.

    I wish them all good luck!

    Dan Morell

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