Future of Daily Deals Market!

Today I was reading a Hitwise analysis report by Bill Trancer and was just thinking that what will be the future growth of daily deals market? Has that reached its peak?

The new analysis from Hitwise seems to suggest the same. Hitwise found out that the number of hits to daily deals websites like Groupon have fallen down over the summer after reaching its peak during June. Traffic to Groupon in the third week of August was down almost half compared to the peak point in June. Overall the visits to the daily deals category of websites went down by 25% in August.

“Regardless ... the drop-off in Groupon traffic this summer has been significant,” according to Bill Tancer, GM of global research at Hitwise.

“Perhaps it is simply a case of increased number of competitors and deal fatigue among consumers or simply not enough of the right deals,” Tancer suggests.

The study also chimes with the research done by Lightspeed Research earlier this summer. According to the research while consumers are signing up for deals websites, many of them still haven’t actually taken up any deal. Lightspeed surveyed 1,000 people in an online poll in June and found that 72% of them were aware of deals website and about 80% of those aware had registered on those deals websites. But out of those who had registered only 54% had made a purchase, 59% are not enticed by any of the deals, 22% got financial constraints and 10% says they could but deals were too far away.

Pricegrabber also have same outcome from the local deal survey they did. Around 44% of those surveyed said they got registered and they use the daily deal websites, but 52% said they got overwhelmed with numbers of emails they get every day from these websites.

Looking into the future, Forrester recently predicted that the daily-deal market will be virtually non-existent by 2016.

“Standing out above the clutter [will become] harder for marketers as ad exposures grow,” Forrester analyst Shar VanBoskirk explained in a report released last week. “Consumers will grow so conditioned to micro-impulse offers they’ll lose practice at considered decisions ... Facing a cultural descent into maladroit judgment, employers (and spouses) will blacklist impulse deals to keep people intentional,” he noted.