Brafton has long reported the rise of locally targeted daily deal sites, including Groupon and LivingSocial. New research from BIA/Kelsey suggests deal-a-day programs will continue to grow, generating as much as $6.1 billion in revenue by 2015. With this in mind, marketers should consider these platforms – and the web in general – as a valuable means of connecting with local audiences.
According to the research firm, revenue from daily deal sites is expected to demonstrate 35.1 percent compound growth over 2010's $873 million. This positions the market at $3.9 billion by 2015 – however, the company notes that variables, including growth in registered users and the average transaction per user, could push sales further to $6.1 billion.
The firm believes that new developments which provide deals even closer to where users live will help ensure that the novelty doesn't wear off, and this will also help more companies get on board to target nearby consumers.
Ironically, this report comes out just as one industry analyst declared that Groupon made a $6 billion blunder when it turned down Google's acquisition offer. While the deal-finder is still an industry leader, Brafton has reported that Google plans to aggressively move into the local marketing space – perhaps even with a similar platform called Local Offers – and marketers trying to break into the local space may find a ready partner in the search giant this year.