Daily-deal sites are all the rage, and the wave is being led by Groupon and LivingSocial. They’re clearly ahead of the pack but what makes them different? According to comScore, each site attracts different sets of consumers and display advertisers.
Though Groupon and LivingSocial have similar business models, they reach different segments of the U.S. market. The daily-deal industry is “the new American West of the Internet, according to comScore. Here’s the breakdown of each site’s percent composition of unique visitors by region:
Groupon:
South Atlantic: 18 percent
East North Central: 17 percent
Pacific: 17 percent
Mountain: 11 percent
West South Central: 10 percent
Mid Atlantic: 9 percent
West North Central: 8 percent
New England: 5 percent
East South Central: 5 percent
LivingSocial:
South Atlantic: 20 percent
East North Central: 15 percent
Pacific: 14 percent
Mountain: 11 percent
New England: 11 percent
West South Central: 10 percent
Mid Atlantic: 9 percent
West North Central: 6 percent
East South Central: 3 percent
According to comScore, Groupon’s visitor base skews toward younger users and females, while LivingSocial’s visitor base is more normally distributed around middle-age users and fairly equal between genders.
“Both Groupon and LivingSocial share the mindset that advertising and customer acquisition is an investment rather than expense, but they execute on this paradigm differently,” according to comScore.
Groupon delivers only 31 percent of its display ads to big boys
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