It’s April 2012 and consumers in North America are spending approximately $7 million per day on thousands of different daily deals. I wanted to share with you the largest revenue generating deals of the past few years. Using Savvr Analytics I pulled together the top offers, sorted by revenue:
|1||Nov 19th, 2010||Groupon||Nordstrom Rack||$15,593,175||623,727||$25||$50|
|2||Jan 19th, 2011||LivingSocial||Amazon.com||$13,012,960||1,301,296||$10||$20|
|3||Aug 19th, 2010||Groupon||Gap||$10,876,975||435,079||$25||$50|
|4||Sep 13th, 2011||LivingSocial||Whole Foods||$10,000,000||1,000,000||$10||$20|
|5||Mar 2, 2011||LivingSocial||Fandango||$9,000,000||1,000,000||$9||$30|
|6||Jun 6, 2011||LivingSocial||Fandango||$8,620,245||957,805||$9||$30|
|7||Jun 2, 2011||Groupon||Old Navy||$6,566,450||656,645||$10||$20|
|8||Mar 20, 2012||AmazonLocal||Amazon.com||$5,000,000||1,000,000||$5||$10|
|9||Nov 19, 2011||LivingSocial||McDonald’s||$3,791,788||291,676||$13||$26|
|10||Mar 29, 2011||Groupon||eBay.com||$2,800,000||400,000||$7||$15|
It’s interesting that AmazonLocal, a relative newcomer, is responsible for the only deal so far in 2012 to make the list. Their $5 for $10 Amazon.com gift card deal reached 8th place and sold 1M deals in just 17 hours. Google Offers just ran a $5 for $10 Starbucks deal which undoubtedly performed well but it’s difficult to analyze as they keep their numbers private.
This makes me curious: Why haven’t we seen any deals of this scale from Groupon since June? LivingSocial ran numerous top deals in 2011 but has remained quiet since the holidays. Are we going to see more great deals like these?
These deals are all about subscriber acquisition and customer lifetime value. Maybe this is why Groupon and LivingSocial have been relatively quiet: they’ve already hit critical mass and don’t need viral deals to reach new subscribers. We’ll see AmazonLocal and Google Offers continue to publish deals like these to gain the same level of consumer awareness. However, Amazon and Google both have a strong competitive advantage through many existing services and they will use these to support their growth.
For example, Amazon deals are already distributed to their ad-supported Kindle readers. Amazon acquired Zappos.com in 2009 — how long until we see a “$25 for $50″ Zappos.com deal? So far, Amazon.com and AmazonLocal have remained separate but we may start to see offers show up within Amazon.com search results directly.
Google can leverage their widely used search engine and vast advertising network to target users in ways unavailable to outsiders. For example, I came across this ad today:
It was displayed right alongside the normal, boring, text-ads. Other deal companies can run ads on Google but they do not receive this level of treatment in grabbing the customer’s attention.
As the daily deal marketplace continues to mature, it will be interesting to see what Google and Amazon do next. We will be keeping a close eye on this topic and continue to share detailed analysis of key happenings in the industry.