Home  › Social › Social Commerce
groupon-logo

Quite A Deal: 'Groupons' to Earn $4B by 2015

  |  March 3, 2011   |  Comments

BIA/Kelsey study suggests a 35 percent compound annual growth rate during the next four years.

Consumers will annually spend $4 billion on Groupon, LivingSocial, KGB Deals, and other daily deal sites by 2015, according to a new study from BIA/Kelsey. The Chantilly, VA-based research firm's estimates represent a dramatic growth trajectory for the marketing niche.

In 2010, BIA/Kelsey found daily deals services captured $873 million. If correct, its projections indicate a 35 percent compound growth rate during the next four years. In addition, it says there are now 178 cities being served by such sites, reaching 102 million U.S. consumers.

Groupon and LivingSocial are the clear marketplace leaders in a space involving around 200 deals-based brands. According to a Wall Street Journal report, an internal Groupon memo recently revealed that its revenue skyrocketed to $760 million last year from $33 million in 2009. And Amazon-backed LivingSocial recently said it was collecting revenues of more than $1 million a day and is expecting to gross at least $500 million in 2011.

Meanwhile, Bing said on Thursday it will enter the daily deals fray by aggregating offers from Groupon, LivingSocial, Restaurant.com, and other sources. According to the Microsoft-owned company's blog post, it will provide access to more than 200,000 daily offers in over 14,000 U.S. cities and towns. Bing partnered with The Dealmap to launch the service.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...
    • Technical Business Analyst
      Technical Business Analyst (OmniVista Health) - BaltimoreOmniVista Health is looking to add a Technical Business Analyst to our expanding team...