Hitwise: LivingSocial Gaining Ground On Groupon

Amazon deal slashed Groupon's lead

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A single high-profile deal has done wonders for LivingSocial’s popularity, according to a new Hitwise report.  The site, which trailed Groupon in terms of visits by a huge margin, closed the gap by a significant amount after offering $20 Amazon gift certificates for $10 last week.

A disclaimer: it’s of course far too early to say whether the traffic bump will be permanent.  People who are eager to save money may prove happy to go to whatever site can offer them the best bargain, meaning media coverage of another great deal could turn this all on its head in a single day.

Still, Bill Tancer wrote this afternoon, "In a previous post less then two months ago we analyzed the difference between Groupon and LivingSocial visitors.  At the time, visits to Groupon outnumber those to LivingSocial by a factor of 10-1. . . .  Fast forward to last week.  LivingSocial has closed the gap, now with over half the visits of group coupon leader Groupon."

Then Tancer added, "LivingSocial’s 80% traffic surge last week (and Groupon’s 20% decline in the same time period) proves that the race for dominance in the group coupon space is far from over.  With LivingSocial still exhibiting a healthy component of early adopters, Google launching a competitive offer and rumors that Facebook might enter the fray, I think I would have taken the $6 billion."

It should be interesting to see where this goes.  Perhaps LivingSocial will get an acquisition offer of its own as Google tries to build up Google Offers.

Or Google Offers could just come out of nowhere and, with the support of the search engine giant (its market cap is $197.6 billion right now), take over the sector.

Hitwise: LivingSocial Gaining Ground On Groupon
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  • http://www.dailydealpool.com Guest

    It’s great that LivingSocial has expanded, growing more and more popular. It is nice that consumers can have a choice when it comes to the daily deal or group-buying site they want to use.

    A great site to use to find the best sales and deals in your area from any daily deal site is http://www.dailydealpool.com. They email you daily, keeping you from having to search and ensuring you don’t miss out!

  • http://andrewhillman.com Andrew

    I think you need to wait a good 2 mo to determine if they are catching up. The Amazon deal is the reason for bump. They will need to have a power deal a month to catch groupon, not sure if its possible.

  • http://www.freefu.com EARL GEORGE

    While Groupon and Living Social continue to fight it out over an advertising platform that sucks a lot of revenue away from the business advertising the offer, sites like www.freefu.com continue to slowly gain businesses that are tired of heavily discounting an offer then also giving away half of the sales generated. On freefu.com, all a business has to do is offer something for free, such as a ‘buy one get one free’ offer and they can advertise for free. freefu.com – the better deal site.

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