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August 22, 2011

Daily Deals Market Revenues To Grow 138% in 2011


This infographic (source :Dailybits ) takes a  look at what the biggest “daily deal services” sites do, which ones have gained most popularity and how they have achieved such viral success, along with analysis and comparisons between these main players 
Revenue from online daily deal and discounts sites including Groupon and LivingSocial will top $2.67 billion in 2011, up 138% from $1.12 billion in 2010, projects Local Offer Network Inc., which sells advertising and technology services to group-buying sites.
The company says at least 320 U.S. sites offer daily deals  and US Daily Deals sites in total offered 63,000 deals in 2010. That record will almost certainly be shattered this year, as Local Offer Network estimates that the first quarter of 2011 brought 40,000 daily deal offers to U.S. consumers. “This is driven by new deal brands and an increasing number of sites publishing multiple offers per day,” the report from the company says, adding that the average daily deal site in the United States serves at least 10 markets.

The most popular types of online limited-time deals in the United States remain those related to food and drink, which in the fourth quarter of 2010 accounted for 26% of such online discount offers.

Beauty, spa and massage offers continue to hold the second spot, with 20% of offers, followed by fitness and nutrition, 7%, and sports and recreation, 5%.Home products and services are making some of the most significant gains, reaching 6% in the fourth quarter from 3% in the third quarter. Offers related to clothing and accessories also are gaining importance, the report says, reaching 4% in the fourth quarter, up from 2% in the second quarter.
However not all is hunky dory with the Daily Deals Market.A recent study by Rice University found that, on average, just 55.5 percent of merchants made money via a Groupon deal, with salons and spas, plus restaurants, having the hardest time with a Groupon daily deal promotion. In fact, according to the survey, just 43 percent of restaurants earned a profit with a Groupon deal, prompting some to ask why Google even considered buying it in the first place.