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Group Buying Sites Experience 1000 Percent Growth in Visits

Power Retail - Star Deals

Experian Hitwise research cements popularity of group buying sites, revealing traffic to these sites increased by 1000% within the past twelve months.

It’s no secret that group buying websites have created an online phenomenon to be reckoned with, however figures released by Experian Hitwise highlights just how popular this category has become with consumers.

The internet measurement company revealed that share of visits to the custom ‘daily deals’ category increased by over 1000% in the past twelve months, with the average time spent on these sites increasing by 153%. Stardeals (Groupon’s foray into the Australian market) was reported as being the number one site within the category.

However it seems that traffic doesn’t come cheap for these websites, with Matt Glasner, General Manager, Experian Marketing Services commenting that the amount of paid search traffic by daily deals site is “twice what is normally expected” (quoted by Retailbiz.com.au).

Glasner went on saying that not all sites need to spend big in order to grow their market share, commenting that use of social media channels can be a key differentiator between these sites.

“If we consider Stardeals, the number one driver of traffic to their site is Facebook. Even those brands that do not have access to significant investment, can start to build brand recognition through social media channels, in a way that hasn’t been possible for more traditional retailers.”

Other findings by Experian Hitwise show:

  • Traffic to coupon websites through email has seen the greatest growth with an 87.5% increase in the amount of traffic going from email services to group buying sites over the last 12 months.
  • The major web traffic drivers for the daily coupon websites are currently search engines (15.32%), social networking site (13.68%) and email (10.35%).
  • Females are 7.2 % more likely to visit coupon websites indicating their love for time-limited impulse purchases.

“A key challenge for retailers in 2011 will be how to adapt to this change in consumer behaviour and deliver their products or services at a price point which is in line with the expectations of online value shoppers.

“Customer information will be key to their long-term success and determine business growth, as well as their ability to respond and adjust their business model to market changes.” Glasner told Retailbiz.

Nirosha Methananda

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Nirosha is a content creator for The Media Pad, publisher of Power Retail. Coming from a marketing and communications background (in the legal, retail and online industries), Nirosha is excited to be able to put her knowledge and experience to work for Power Retail. Recently engaged, Nirosha is immersing herself in the joys of wedding planning! She is also an avid reader (of mostly fiction), always keen to get onto the golf course, likes to paint, tries to sing and is able to recall useless celebrity facts at the drop of a hat!

3 Comments

    • Ravi
    • 30th May

    Group Buying has also started in real estate market. Just saw http://www.groupbookings.in which offers huge discounts on property group buying. if this trend continues then no one will go to the developers and instead buy only through group booking websites.

    Reply
  • Group buying has changed EDM and Online marketing forever. We now are figuring these promotions into our marketing plans. We will likely spend less on adwords to part fund this. I am beginning to think, at least our early evidence is indicating that these promos could give a better ROI.

    While the jury is still out, a bit of further trial and evaluation will determine how much more funding will go in this direction as a customer acquisition tool.

    Reply
  • Coming to B2B too, online retailers in particular. Sqwark! is surveying online retailers to find out what their headaches and issues are, so as to tailor and target deals to help ORs cut costs and grow their business. 2-minute, 1-page survey with $50 reward to first 5 ORs who respond: http://www.sqwark.com/pages/survey1

    Reply

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