BIA/Kelsey Forecasts U.S. Consumer Spending on Online Deals to Reach $3.6B in 2012
Twenty-six percent of local businesses say they are 'very' or 'extremely' likely to participate in an online deal in the next six months.
CHANTILLY, Va. (Sept. 17, 2012) – BIA/Kelsey, advisor to companies
in the local media industry, forecasts U.S. consumer spending on online
deals (including daily deals, instant deals and flash sales) to reach
$3.6 billion in 2012, an increase of 86.9 percent over 2011. BIA/Kelsey
projects 23 percent growth in deals spending in 2013, followed by mid-single-digit
growth in later years. This translates into deals spending climbing
to $5.5 billion in 2016.
“After astronomical growth in 2012, the online deals marketplace
is showing signs of maturity,” said Peter Krasilovsky, vice president
and program director, BIA/Kelsey. “There has been consolidation
in the space, deal conversion rates may be suffering due to over-familiarity
and the market may be near saturation. Still, market leaders continue
to exhibit growth as market awareness and penetration spread.”
Going forward, BIA/Kelsey envisions online deals will become an anchor
for a platform of non-advertising small-business services. These services
include instant mobile deals, loyalty products, promotions, reputation
management, transaction processing and ecommerce. While these services
have already been introduced to the marketplace, they have not made
a significant impact on overall deals revenues to date. Eventually,
BIA/Kelsey expects they’ll become an anchor element in the broad
Merchant Adoption of Deals
Findings from the latest wave of BIA/Kelsey’s Local
Commerce Monitor (LCM) study of U.S. small businesses reinforce the strong continued
interest in deals participation by local and small businesses. More
than one-quarter (26 percent) of small businesses surveyed said they
are either “very likely” (15 percent) or “extremely
likely” (11 percent) to participate in a deal in the next six
months. An additional 24.3 percent said they are “somewhat likely” to
do so, indicating more than half of the small businesses surveyed have
a favorable view of deals.
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BIA/Kelsey is presenting highlights from LCM Wave 16 today during
a briefing to its advisory services clients at the SMB
Digital Marketing 2012 conference in Chicago.
The online deals forecast is available to clients of BIA/Kelsey’s
Marketplaces advisory service. Findings from the LCM study are published
in a range of reports for the firm’s advisory services clients.
For information on these services and access to the forecast and LCM
study findings, call (800) 331-5086 or email firstname.lastname@example.org.
BIA/Kelsey advises companies in the local media space through consulting and
valuation services, research, Continuous Advisory Services and conferences.
Since 1983, BIA/Kelsey has been a resource to the media, mobile advertising,
telecommunications, Yellow Pages and electronic directory markets, as well
as to government agencies, law firms and investment companies looking to understand
trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives
from across industries seeking expert guidance on how companies are finding
innovative ways to grow. Additional information is available at http://www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
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