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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.


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.

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