Survey Says…What is a Daily Deal?

A recent survey by research company Synovate states that 7 in 10 Adult Canadians are aware of Daily Deal sites. It also stated that the top 4 sites based on awareness are Groupon, Kijiji, Wagjag and Redflag deals. I have a few problems with this survey:

1. I find the statement that 7 out of 10 Adult Canadians know about daily deal sites to be far fetched. The survey went to online savvy folks and not regular Canadian consumers. It also only reached 1000 consumers. Were these consumers properly weighted to represent all provinces correctly?  I found this survey to be lacking and therefore decided to go about my own research experiment. I decided to approach, in a very “scientific manner” 10 random people across Canada. Some I approached directly in Montreal and Toronto and the rest I called by phone. I asked them all the same question: “Do you know what I mean when I say Daily Deals, Group Buying,or GROUPON?”

The result? Only 4 out of 10 knew what the heck I was talking about. The others drew a blank. I even asked a rather successful business woman that owned close to 15 fast food restaurants, she had no clue what I was saying. But I got her interested in the concept.

My take: Most people know about daily deals and Groupon if they are INTERNET people. If they are online. However, regular folks that go about their day offline, that work in “regular” jobs, that are busy building their career or business do not come across this type of promotion at all. Heck, 90% of my own family have no idea what Daily Deals are either. The point is this: Daily Deals have a long future. They are not yet main stream and their growth will continue as more people become aware of these types of promotions. My Mom and her group of 25 senior friends would love to know about 50% off deals. They would be buying all week long.

 

2. My second issue with this survey is that the result completely depends on who you ask across the country. The top sites across the country based on sales are Groupon, Wagjag, Dealfind, Teambuy, DealoftheDay (redflagdeals) and Living Social. But ask the same question in Quebec and the answer is Tuango, Les PAC/redflagdeals, Teambuy, Living Social, Groupon, Le Renard.

My point: There is no Wagjag in Quebec, Kijiji deals aren’t even in the top 10 across the country and Tuango just dominates Quebec. According to us, it seems that awareness of sites across the country should typically mimic the brands that advertise the most, have the most sales and have a good distribution model. So here is our own list of sites that Canadian should be most aware of:

-Groupon (world wide brand and spend the most on advertising)

-Wagjag (dominant in Ontario and out west and distributes through Metroland papers)

-Dealfind (one of the top sites in Canada and advertises tons in the country)

-Dealoftheday(redflagdeals/lespac) (owned by the yellow pages, run by the folks at Redflagdeals and Les PAc in Quebec, but surprisingly does not brand well)

-Tuango (the most dominant player in Quebec and essentially buys every media inventory there is in the province.)

2 Comments
  1. dave@freemoneydeals.ca'

    Hi,
    I just stumbled upon this article and could not have agreed more. As an insider in the group buying industry, I can confirm everything you said above and I do share your opinion that daily deals market still has a lot of growth potential in it.

    Regards,
    Dave
    FreeMoneyDeals.ca