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BizReport : Ecommerce archives : April 27, 2011

Facebook, Groupon, Living Social - Where is group couponing going?

Add another potential attention grabber to social kingpin Facebook's wall: the daily deal. This week the network launched their version of a daily deals site, allowing users to like, share and pass along daily deal information to their friends and family with a simple click.

by Kristina Knight

Sites like Groupon and Living Social are firmly planted the daily deal field, so Facebook has taken another tack - the group deal. As in doing things as a group.

For the most part, deals on other sites are singular events - having a manicure, for example. The deals on Facebook's hub will be social - having a group wine tasting, for example. Facebook's deals site has launched in five markets so far - Atlanta, Austin, Dallas, San Diego and San Francisco.

According to a recent BIA/Kelsey report, deal-a-day offers and websites may reach nearly $4 billion (United States) by 2015. That is a compound annual growth rate of more than 35%.

"...Facebook definitely has some major advantages in this space," writes Peter Krasilovsky, BIA/Kelsey analyst. "Just witness how EventBrite has leveraged Facebook mentions for its event sales. It figures every Facebook mention is worth about $2.50...What Facebook doesn't seem to have are feet on the street and telemarketers. The thousands of sales people that leaders like Groupon and Living Social have on board definitely helps move local small businesses out of their inertia."

What are deal-minded consumers looking for? According to new data from NielsenWire home-related products. According to their analysis of Groupon and Living Social consumers, 46% are looking at Gardening deals, 35% for Home Repair/Renovation and 32% check out Landscaping information. Religious Involvement is also high on the list, as are non-computer video games and cooking.

Tags: BIA/Kelsey, couponing, ecommerce, Facebook, group coupons, Groupon, Living Social, NielsenWire, online coupons, online shopping

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