Deal Industry stats by Borell

Here are some interesting industry stats provided by the folks at Borell. This info comes from their new Borrell survey of 40K consumers and around 729 SMB advertisers. These highlights and graphs were published by Greg Sterling on his blog Screenwerk. If you have not had a chance, take a look at his writings on the local commerce and media space in the US.

Although this study was done in the USA, with some exceptions, we find that the results do not differ that widely for the Canadian market. We provide a little summary at the end of the post.


Highlights of the survey:

  • Coupons/deals are the preferred form of mobile advertising (by consumers)
  • 53% of adults said they use more deals and coupons than last year
  • 60% of consumers use coupons/deals at least once per wk
  • 63% will search 2-10 different coupon sources weekly, 11% search more than 10 sources
  • 80% likely to select next vacation destination based on existence of coupon/deal
  • Consumers have registered for average of 3.6 daily deal emails.
  • Average number of deals purchased in past 6 mos is 4.4
  • Consumers receive deal emails daily but the majority would rather get them weekly.
  • Borrell also found that 48% of merchants would repeat a daily deal

Source: Borrell Associates


Source: Borrell Associates


Source: Borrell Associates


Our take away:

1. Daily deal sites…start offering weekly emails to your subscribers or else they will sign off and subscribe to a daily deal aggregator site that offers a better experience. Daily emails is truly an over load, especially if they are generic and not targeted to the subscribes’ preferences.

2. Deal sites…offer more food, grocery and restaurant deals. This is a large part of the consumer expenditure in any given year. Entertainment deals are wanted as are clothing, yet deal sites do not offer as many deals in these categories. Also, offer more travel and getaways not only because consumers want travel but also because it commands a higher price point and drives revenue.

3. Notice that deals on spas/salons aren’t really top of mind for consumers. Yet they are the number 1 category in terms of deals offered and profitable deals for deal sites. These deals will continue to be offerd above others that may be more popular simply because they produce a more profitable return for deal sites.

4. Home services: this category is low on the consumer popularity scale, however look for this one to increase significantly over the next 24 months as some daily deal sites try and “train” their customers to shop with them first for home services before even looking and searching in the yellow pages. As more consumers get used to searching for home contractors, home services on deal sites, this category will become very popular.

5. The study states that 80% likely to select next vacation destination based on existence of coupon/deal. This means that vacationing patterns and options are being significantly shifted due to all the daily deal site offering great deals on travel. Both Groupon and Living social have very successful travel categories and in Canada, Teambuy, Tuango and certainly Wagjag and have motivated plenty of customers to choose their travel deals instead of the typical travel site.

We’ll post more data as it comes in.