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Showing posts with label social shopping. Show all posts
Showing posts with label social shopping. Show all posts

September 14, 2011

US Daily Deal Market To Grow by 36% by 2015

BIA/Kelsey, adviser to companies in the local media industry, today released an update of its U.S. deals forecast, first issued in March. The firm expects U.S. consumer spending on deals (including daily deals, instant deals and flash sales) will grow from $873 million in 2010 to $4.2 billion in 2015, representing a 36.7 percent compound annual growth rate (CAGR). In March the firm had pegged 2015 deals spending at $3.9 billion, with a 35.1 percent CAGR.

Compared with the earlier forecast, this update indicates only a slight increase overall by 2015. However, revenues for 2011 have been revised upward significantly to $2 billion from the $1.2 billion originally estimated in March

Groupon and LivingSocial continue to lead a growing marketplace of 600-plus players, which include destination sites, white-label providers working with local media such as directory companies, newspapers, and radio and television operators; vertical players; mobile/location-based providers; flash sales sites; exchanges; and aggregator

“Even as more consumers sign up for deals programs and awareness grows and new markets are entered, we see a ceiling on how many deals consumers will buy, and their overall interest level in deals,” said Mark Fratrik, BIA/Kelsey vice president and chief economist. “
Among the factors underlying this revised forecast are:
  • A bigger increase in the number of registrants for deals services. Market leaders Groupon and LivingSocial have expanded quickly and many more participants have entered this arena, including vertical sites and local media companies (either in cooperation with Groupon and LivingSocial or through white-label firms)

  • Growth in the number of registered users who are “active” (e.g., buying coupons).
  • Greater specialization of deals sites (both vertically and by neighborhood), better targeting capabilities and continued marketing of these services will lead to more activity by registered users.