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.