March 8, 2011, 11:24 AM

Groupon and its competitors’ revenue may reach $6.1 billion by 2015

That’s up from $873 million last year, according to a new report.

Zak Stambor

Managing Editor

Lead Photo

The daily-deal wave is not going to ebb anytime soon, according to a new report from BIA/Kelsey, a media research and consulting firm.

The report suggests that U.S. consumer spending on Groupon, LivingSocial and other daily-deal sites will reach $1.25 billion this year, a 43% jump from $873 million in 2010.

The consulting firm expects the sites to maintain a 35.1% compound annual growth rate through 2015. That would peg revenue at $3.9 billion in 2015. However, the report suggests that a number of factors, such as growth in the number of sites, registered users and average transactions per user per year, could boost revenue to as much as $6.1 billion by 2015, which would translate into a 47.4% compound annual growth rate.

“Deal a day has experienced incredible growth during its three-year incubation period,” says Mark Fratrik, vice president, BIA/Kelsey. “We expect this to continue as companies in the space are rapidly adding markets and increasing their total user counts.”

In addition to moving into new markets, Groupon and LivingSocial are both increasingly tailoring their offers to specific areas within particular metropolitan areas. That means that a consumer in Brooklyn, for instance, receives a different offer than a consumer in Manhattan.

“Providing deals closer to where users live will help offset any drop-off that may occur due to consumer fatigue as the novelty of the form fades,” says Fratrik.

BIA/Kelsey estimates there are more than 200 daily-deal sites, including both destination sites and white-label providers that funnel deals that local media providers can brand as their own.


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