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

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…

Case Study: Using Daily Deals to Target College Students

What’s the best way to draw college students off campus and into nearby coffee shops and stores? Andrew Eigel, owner of gaming cafe Roxx Electrocafe, believes the answer is a combination of daily deal coupons, humorous sandwich boards, and well-placed QR codes that customers can use to redeem free drinks and other specials. The Cincinnati entrepreneur pitted Groupon against LivingSocial to see which one worked better. As it turned out, he needed them both.

Facebook’s Life After Deals

The best or biggest deal, assertion, investment or other strategy this week. Who: Facebook What: Taking another approach to location-based services Just a week after it said it would abandon its location-based service Places in favor of a new strategy, Facebook announced that it was getting out of the deals business. Facebook Deals was only around […]

Bloomspot Leads an Industry Shift

Who: Bloomspot

What: $40 million in funding and a merchant guarantee

With all the chatter about Groupon’s updated IPO filings this week, and news that Patch is offering up daily deals in 800 (not a typo) hyperlocal markets, a couple of announcements from Bloomspot didn’t get as much attention as they otherwise might. The company said that it had scored a whopping $40 million in new funding, and revealed that it is using the data it collects to guarantee that deals they do will be profitable to vendors, or Bloomspot will cover the difference from its cut. There are a couple of important takeaways from all this news…

Is the Local Deals Industry Heading for Segmentation?

Some companies are betting on a major specialization of the deals market. Signpost CEO Stuart Wall believes that the “stack” — a term used to describe the spectrum of companies in a single industry — is dividing into three major segments: distribution, exchanges, and merchant specialists…

American Express Gets Into Daily Deals

Who isn’t getting into the daily deals space? That’s becoming a tough question to answer. The latest company to get on the bandwagon in AmEx–and it looks like they have some very intelligent twists on the concept that will help convince customers to spend more.

What Kinds of Businesses Do Daily Deals Benefit Most?

Business owners are always looking for a silver bullet — a killer feature that will bring in new customers. The recent daily deals craze has held out the promise of this kind of customer acquisition, but when is a deal feature a silver bullet, and when is it is shot in the foot?

Why Niches Are Becoming More Important for Deals

In the month since Groupon’s S-1 filing, there has been a lot of criticism directed at the nascent daily deals industry. Some say that the deals model is unsustainable, while others claim that running a deal can cripple a small business. But before jumping on that bandwagon, it’s important to remember that online deals are still in their infancy…

Revolution’s Savage: Finally, Innovation for the $150B Local Pot

Tige Savage has worked closely with AOL founder Steve Case for years, co-founding Revolution with him and now heading up its venture investments, including being the first investor in LivingSocial, the daily deals company. As Groupon aims toward an IPO exit and deals, location and hyperlocal startups continue to pick up funding, Savage discusses what makes it an attractive market for investors, how these companies are expected to evolve, and the changes finally taking place in local advertising…

Groupon to Go Public — And Then Where?

The point of the company that eventually became Groupon was initially to inspire group action around a political or social cause. It was called ThePoint.

The point of Groupon… well, that may yet to be determined. The company, which filed an S-1 today with the Securities & Exchange Commission for a $750 million initial public offering, is known as a group-buying firm offering deep discounts on everything from hair removal to horse rides, complete with clever copy in each offer. It has seen a meteoric rise in revenue, earning $644 million in the first quarter of 2011 alone, up from $713.3 million in all of 2010. It has 83 million subscribers across 43 countries. And, as CEO Andrew Mason revealed this week at AllThingsD’s D9 conference, about half of its 8,000 workforce is in sales. Groupon has some serious feet on the streets…

Partnership With Foursquare Is a Natural Step for Groupon

Earlier this week All Things Digital reported that Groupon and Foursquare were discussing a partnership to push local deals targeted to location-aware check-ins. The media world has been buzzing about the rumor, but neither company has broken an official silence to confirm (or deny) the partnership or discussions. Perhaps it’s just a foregone conclusion, though, that Groupon would add immediacy and social distribution to its model. In fact it already has…

Daily Deals by the Numbers

If you’re confused about the whos and whats of the daily deals filling your inbox, clarity has arrived in the form of a quick primer from the folks at Online MBA. They’ve put together a lovely, old-timey visualization illustrating what four of the big guys dealing the deals are actually offering.

Study: FB ‘Likes’ Driving Buzz for Local Biz

The Facebook “like” button, which has been around for just over a year, has already become an important cultural phenomenon. A couple of months ago, a study by Yahoo Labs’ Yury Lifshits looked at how “likes” affect traffic to news stories by reinforcing memes, making the most popular content even more popular as it is passed around.

Yipit’s Jim Moran: Lots of Winners in Hyperlocal

With so many daily deals sites popping up in the past year (following the mad success of Groupon), it’s natural that consumers would want a way to sift through, aggregate, and personalize these e-coupons to fit their needs. Enter Yipit, which launched in 2010 and draws on over 400 local deals sites (including Groupon, LivingSocial, and Scoop St.) to deliver customized lists of nearby deals...

Street Fight caught up with the company’s CEO, Jim Moran, for a quick Q&A about Yipit’s mission in the hyperlocal space, and whether the daily deals craze might be a “bubble.”..