In its second-largest acquisition, Amazon buys the company for $970 million.
The daily deal services vendor says consumers have seen 40,000 deals so far in 2011.
Revenue from online daily deal and discounts sites including Groupon and LivingSocial will top $2.67 billion in 2011, up 138% from $1.12 billion in 2010, projects Local Offer Network Inc., which sells advertising and technology services to group-buying sites.
The company says at least 320 U.S. sites offer daily deals, and that such sites in total offered 63,000 deals in 2010. That record will almost certainly be shattered this year, as Local Offer Network estimates that the first quarter of 2011 brought 40,000 daily deal offers to U.S. consumers. “This is driven by new deal brands and an increasing number of sites publishing multiple offers per day,” the report from the company says, adding that the average daily deal site in the United States serves at least 10 markets.
The most popular types of online limited-time deals in the United States remain those related to food and drink, which in the fourth quarter of 2010 accounted for 26% of such online discount offers. Beauty, spa and massage offers continue to hold the second spot, with 20% of offers, followed by fitness and nutrition, 7%, and sports and recreation, 5%. But Local Offer Network says that home products and services are making some of the most significant gains, reaching 6% in the fourth quarter from 3% in the third quarter. Offers related to clothing and accessories also are gaining importance, the report says, reaching 4% in the fourth quarter, up from 2% in the second quarter.
While the average discount per offer remains steady at 53%, the average price per deal voucher continues to increase, thanks in part to more deals involving luxury and other high-end goods and services, such as medical and dental care, the report says. The average price per voucher stood at $38.04 in the fourth quarter of 2010, and increased to $42.45 in the first quarter of 2011.