Two major consumer trends–hyperlocalism and budget consciousness–are creating a booming business for daily deal sites, such as Groupon or Living Social. The sites have changed the business landscape by shifting how consumers search for bargains and connect with businesses, both large and small and local and national.
The Nielsen Co. looked at the two largest players in the daily deal game–Groupon and Living Social–to find out who their audiences were. Knowing what demographics each brings to the table could help bakeries decide which one offers the best environment for any deal they would like to place.
The study found that nearly two-thirds of the visitors to both web sites were female and more likely than the average internet user to be affluent. About 46 percent of Living Social’s visitors have a bachelor’s or post-graduate degree compared to 39 percent for Groupon. The national average for internet users is 25 percent. Visitors to Living Social also are 49 percent more likely than the average American online to make $150,000 or more. Groupon’s users were only 30 percent more likely.
The two sites are very similar in gender and socioeconomic demographics, but they each have notable differences in the ages and geographic location of their users. About 57 percent of Groupon users were aged 35 to 64 compared to 51 percent for Living Social. The internet average for that age group is 48 percent. Younger visitors, aged 21 to 34 make up 33 percent of Living Social’s users while that age group accounted for only a quarter of Groupon’s audience and only 21 percent of national internet users.
Both sites are national in scope, but Groupon has a higher concentration of users in the Northeast United States while Living Social draws a larger audience in the South and Pacific regions.