Groupon has just filed for an IPO, Amazon has invested in LivingSocial, and the list of online coupon competitors keeps growing.

So what is the key to these overnight successors?

It is not often that a $6 billion acquisition offer from Google is rejected, nor is it a common occurrence that a company can raise near to $1 billion in fresh financing.

Groupon, the fastest growing business in history, is elevating to a new platform.

The drive behind their success lies in generating publicity. What these deal giants are doing is providing a means of exposure for small and big businesses alike to a new audience whilst providing the consumer with up-to-date deals at a negotiated rate. Essentially, they are putting money in everyone’s pocket; business is generated for the retailer, the coupon reseller (ie. Groupon, LivingSocial, etc.) is taking a cut of the profit, and the consumer is getting discounted goods and services. All with a click of a button.

Groupon and LivingSocial appear to have different target markets, as well as slightly differing means for reaching their audience. However, according to comScore the two discount gurus of the online world occupy 90% of the market. As their popularity continues to increase, more and more smaller competitors are coming to light, vying for the public’s attention, and money. This year alone, 273 new daily deal sites were started (MarketingVOX).

Groupon, based in Chicago, has followers typically from the West Coast, of a younger age, and more commonly female. LivingSocial, based in Washington D.C, is more popular on the East Coast with typical purchasers being middle-aged, with a more even split between the genders (comScore).

While market segmentation and dollars spent in advertising is interesting, with the help of our program; EDS Analyst, we are able to get an insight into each companies’ contact methodology and reach.

Using EDS Analyst, we are able to see activity in the last 12 months; how many Emails, Tweets, Retweets, and Facebook Posts were sent, juxtaposed with Website Traffic on the respective days.

Is it any wonder that Groupon is the fastest growing business in history when over the past month they engaged with their contact list 5,053 times!

Amazon; the highest ranked Online Shopping brand, had under half the interaction, sending out 2,390 campaigns across Email, Facebook, and Twitter over the past month.

Breaking this down further, the tool also enables us to see just how many doting followers these market leaders are sending to.

eDataSource’s panel of 750,000 members enables us to show the relative reach of marketers on a daily, weekly, monthly, and yearly breakdown.

In a side by side comparison of their sending lists, we can see that Groupon is just a step ahead of LivingSocial.


Yes, both Groupon and LivingSocial have over 30,000,000 subscribers receiving unique email campaigns!

As comScore highlights, with the different market sectors and approaches the two giants are taking, success will be balancing on marketing execution as opposed to stealing clients from their competitor. The two are in a race to the top.

With a large portion of the market still open for the taking, the small guys have a shot to get to the top. The thing to follow will be who employs the best marketing strategy to woo those not yet interested. Groupon seems to be on the right path, but the market it still currently open for the taking…

Stay tuned, sign in, or request a demo and track the rankings.


Comments are closed.