Daily deals site gained on the competition following a popular Amazon discount offer.
Competition appears to be heating up in the daily deals space, with LivingSocial gaining ground on market leader Groupon following a popular 50 percent off Amazon promotion it ran January 20.
According to data from Hitwise, LivingSocial's traffic surged 80 percent in the week beginning January 17, while visits to the Groupon site declined 20 percent in the same period. Although those gains are likely a direct result of the extremely popular Amazon promotion that ran that week, they imply that market leader Groupon may not have an insurmountable stranglehold on the space.
The direct correlation between LivingSocial's gain and Groupon's decline also suggests a possible saturation in the market, given that a spike in traffic for the former appears to come at the expense of the latter. It would appear, therefore, that consumers are choosing to visit one or the other, as opposed to both. Of course, that trend could simply reflect less popular deals being offered by Groupon that week.
For the week ending January 22, LivingSocial attracted over half the traffic of Groupon. It remains to be seen if LivingSocial can capitalize on that surge in traffic and maintain an increased audience, however.
Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!
Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011.
Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.
Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?
March 19, 2014