I recently spoke at the DailyDealSummit in San Francisco on the topic of how the daily deal offerings of larger companies were performing.
I walked through Google, Amazon, Yelp and TravelZoo‘s performance and then provided suggestions on how they might improve.
During my research, one of the more surprising facts I ran across is that in the top 30 US markets, no company that reports purchase counts outperformed Groupon in August. In fact, in only 5 markets is the second largest competitor even generating 50% of the gross revenue Groupon generates.
Each of the blue dots represents a competitor to Groupon indexed to Groupon’s performance.
The closest a competitor gets is LivingSocial in Raleigh-Durham which generated 69% of the revenue Groupon Raleigh-Durham made.
As you can see no other daily deal sites offers as many deals as Groupon does. LivingSocial comes the closest in some markets offering 70% to 80% of the deals Groupon offers in those respective markets.
On a revenue per deal basis, TravelZoo does perform better than Groupon in a handful of markets like TravelZoo Orange County, but they do offer fewer deals.
One thing to note is that the analysis above is based on companies that report purchase counts. The major players that do not report purchase counts and thus were not included in this analysis are GiltCity and BuyWithMe.
I’ve embedded the full presentation I gave below.
Note that while Google struggled in August, we reported recently that Google was having a banner month in September.
Vinicius Vacant is co-founder and CEO of Yipit, the leading daily deal aggregator. He also shares his thoughts on the daily deal industry via his twitter account: @vacanti. Yipit also offers a data product which provides offer detail and competitive intelligence to the Daily Deal Industry.