Myself and David Iwanow from The Lost Agency recapped some interesting points and gave our thoughts from the Group Buying Panel Discussion about Australian Group Buying sites, Daily Deals and shopping clubs after the Affili@Syd Australia Affiliate Marketing Conference 2011.
Sam Yip from Telsyte Research gave some figures on the size of the Group Buying Market in Australia:
– The market has grown $150m since last year
– 4000 deals / month = $1m vouchers sold
– Pricing high atm with average prices of $75-$80
– Market value for Group Buying in Australia forecast at > $400m, and if you add the daily deals sites too then > $600m
Rolf Weber from Brands Exclusive said they send out 1 million emails a day
Jeremy Same from Deals.com.au made a good point:
– Deals are very conducive to viral marketing, so simply and easy to share
– Very simple purchase decision, usually yes or no
Simon Robinson from Ouffer.com said restaurants were quick to take it up, but the difficulty has been bigger brands, worried about brand equity. Sam from Telsyte said 75% of the market is health/beauty and food/dining.
Moderator Chris Barron from Viva9 challenged the panel saying only 19.9% of deal buyers are returning to restaurants, but Jeremy from Deals.com.au said there was a 30-40% return rate at minimum. Another point raised was that businesses should squeeze more value out by getting the customer to fill out a survey so you get their details.
Other some positive figures for group buying:
– 48% plan to run another promotion
– 36% spend more than the vouchers value
Simon from Ouffer.com said they get significant traffic from group buying aggregator sites, enough volume to take notice and offer revenue sharing with affiliates
Most panellists agreed the future direction of group buying websites would see:
– More group buying targeted for niches, per interests, this is something Groupon is investing in
– More location based and much more finer targeted locally
Let us know your comments!