Group Buying By The Numbers

Group Buying By the Numbers
Jim Moran | @jdmoran | blog.yipit.com
BIA/Kelsey ILM East: Wednesday, March 23

the market

Low Barriers to Entry…

…High Barriers to Scale
The Virtuous Cycle of Daily Deals
Source: Needham & Company LLC (Mark’s whiteboard)
More Cities
More Sales
More Salespeople
Improved Media Buying
More Conversions
More Deals
More Deal Personalization
More Subscribers

The Daily Deal Stack
Daily Deal Sites
MERCHANTS
CONSUMERS
Vertical Deal Sites
White Label
Publishers
Data
Merchant Services
Exchanges
Aggregators
Consumer Services
Merchant Agencies
SOON…

Top 20 markets: February data

February Leaderboard
Source: Yipit Data (http://yipit.com/data)

Top February Offer
Dealfind (Toronto)
The Butchers – 69% off
$627K revenue
11,404 sold
Revenue Index: 18.5x

Revenue Varies by Category

Price for Revenue OR Volume

Merchant Economics

Breakage Rate ≤20%
Recent data on Groupon is consistent: (i) breakage of 10% (TechCrunch, 8/14/10), and (ii) 20% redemption in month 1 and 15% redemption in month 12 (Chicago Tribune 8/16/10).

Profitable at 19% Retention
Assumptions from industry research and Yipitphone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.

High Merchant Satisfaction
Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.Groupon’sreports repeat interest at 97% (grouponworks.com)

Shifting Ad Spend
Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.

Thank you

About Yipit
“Kayak.com” for Daily Deals
Personalized based on where you are and what you like
Yipit API
>10K Daily Deals per month from 400 Daily Deal services
yipit.com/about/api
Yipit Data
Past offer details and competitive analysis
yipit.com/data

Thank You
blog.yipit.com
@jdmoran

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Group Buying By The Numbers

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