BIA/Kelsey: U.S. Deals Marketplace to Hit $4.2B by 2015 | Street Fight

News

BIA/Kelsey: U.S. Deals Marketplace to Hit $4.2B by 2015

0 Comments 14 September 2011 by

The daily deals industry in the U.S. is growing so quickly that local media research firm BIA/Kelsey has revised its March 2011 forecast to reflect the expanded market. The revised report — which measures daily deals, flash sales and instant deals in a single metric — finds that consumer spending on deals will grow from last year’s figure of $873 million to $4.2 billion by 2015. This is a bump up from their March estimate of $3.9 billion (for 2015), and now represents a 36.7% compound annual growth rate.

Notably, while deal revenues for 2011 have significantly shifted upward (to $2 billion from initial estimates of $1.2 billion), the overall trend is one of gradual four-year growth, rather than the classic “hockey stick” scenario.

Peter Krasilovsky, the company’s vice president and program director for marketplaces, (and Local Onliner blogger) told Street Fight that the latest report is “based on more comprehensive data that we’ve been able to bring in since [March].” Besides changing dollar figures, the new forecast also indicates that a broader patchwork of players have entered the deals space.

“We’re seeing activity coming in from players with a smaller footprint. TV, radio, media… they’re playing a more significant role.” Krasilovsky cited activity by AT&T and Google, behemoths that are relatively new participants in an industry already bursting at the seams with over 600 deal providers.

Groupon and LivingSocial may not be checking the rear view mirror yet, he noted: “Groupon leads in almost every market in the US,” he says, “and that tells a story too.”

While competition is plentiful, consumer interest has not been depleted. “Awareness of the deal space is not universal at this point,” Krasilovsky points out. The deal space’s “fad factor” is passing away, too, as marketers recognize the fact that the basic deals concept connects with consumers (to the tune of four deals a year for the average active subscriber).

Barriers to entry in the deal space are low, but Krasilovsky questions whether all participants will have staying power. Deals may be, he says, “not an email play so much as a social media play,” evolving into just one component of an overall e-commerce plan.

Big Things Coming in Local in 2015!


Join us in New York, San Francisco and Denver for Street Fight's industry-leading conferences. Top speakers, great networking, valuable insights, and killer parties.
Click here for dates and details!

Newsletter

Get hyperlocal industry headlines in your inbox every morning. Subscribe to the Street Fight Daily newsletter.


See how brands compare in local presence across areas such as local SEO, data accuracy, social engagement and more. Presented by Where2GetIt and Street Fight. Click here to see the battle!

Free White Paper: Pay-Per-Call’s Role in Improving Marketing ROI

Call campaigns can make the phone ring — or alienate prospective customers. Learn how to get it right: Download "Pay-Per-Call's Role in Improving Marketing ROI."

Produced by Street Fight Insights for Soleo.

Free White Paper: Contextualization

Learn how to deliver better, revenue-driving consumer experiences. Download "Contextualization: Leveraging Location-Based Technology and Mobile to Drive Success for Brands."

Sponsored by Artisan Mobile.

Follow Us

Get the latest Street Fight news, information and analysis via Twitter and Facebook.

The Commerce Graph

The “Commerce Graph” is a new framework we have developed to think about the future of physical exchange. The model offers an alternative to the dominant narrative about the commerce landscape that frames digital networks as an adversary of physical exchange.

The $20 Billion Mobile Marketing Opportunity

Strategies and insights into the landscape of targeting options and how they deliver foot traffic and sales for SMBs.
Check out our 2013 report and get your copy today!

Twitter

© 2014 Street Fight.

Powered by WordPress. Hosting by Page.ly