Consumer Spending on Online Deals Continues Huge Growth

The Way of The Future, The Future

I just read an interesting report from BIA/KELSEY, a research and forecast firm with strong emphasis on media and advertising. The report forecasts that “U.S. consumer spending on online deals (including daily deals, instant deals and flash sales) to reach $3.6 billion in 2012, an increase of 86.9 percent over 2011.”

I don’t know about you, but an increase of 86% isn’t too shabby in my book. This tells me a few things.

1. People are doing more and more shopping from the comfort of their own homes.
2. People love getting deals. Whether it’s an item that a shopper has waited for to appear on a deal site, or whether it’s an impulse buy is beyond the point.  I personally find myself engaging in both activities, and I imagine I’m not alone.
3. The economy still has people looking for the best prices out there.

BIA/Kelsey also projects a “23 percent growth in deals spending in 2013, followed by mid-single-digit growth in later years. This translates into deals spending climbing to $5.5 billion in 2016.”

The online deals space hasn’t been around long and has quickly climbed up the ‘spending’ ladder. Market awareness, while you and I might be baffled that someone has not heard of the deal space or how it operates, still has a ways to go, along with market penetration.

Also of interest from the same report:

“More than one-quarter (26 percent) of small businesses surveyed said they are either “very likely” (15 percent) or “extremely likely” (11 percent) to participate in a deal in the next six months. An additional 24.3 percent said they are “somewhat likely” to do so, indicating more than half of the small businesses surveyed have a favorable view of deals.”

This is good news and while the report doesn’t go so far as to say what percentage of those small businesses who are UN-likely to participate in the a deal in the next six months got burned by one of the big players.  We at Daily Deal Builder have been saying for some time now that the deal space is moving into local and niche markets, where smaller players put more emphasis on their relationships with vendors, versus the big sites who just pound away at sales sales sales.

If you are interested in getting your share of this market growth and launching a local or niche specific daily deal site, no matter where you are located in the world… Let’s talk…

Tyler Horne

support@hcdesk.com
800-794-7192

Source: BIA/KELSEY