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Marketing

Published September 2nd 2011

Friday#: The Brits still love group buying…


Welcome to the Friday#
This week in The Sizzle: Arrington steps down as TechCrunch Ed. In The Fri-Up, The Brits still love group buying The Sauce: The making of THAT Lucozade energy advert.

The Sizzle

The Fri-Up

The Brits still love group buying

We’ve been consistently monitoring the group buying space, watching Groupon and Living social go head to head in recent months. This week, as Facebook shelves their Daily Deals offering and there are reports that Groupon’s traffic has halved, we take another look.

Our last blog post, in April was prompted by the the $3bn valuation of Living Social at the height of the group buying hype. But is Groupon’s fall in traffic due the novelty of deals wearing off, or that people are waiting for deals that are actually relevant rather than clicking through, just because it’s a bargain?

Here’s the history graph showing mentions of Groupon and Living social since February this year:

Fig 1. Groupon vs Living Social Feb 2011- Sept 2011

Groupon vs Living Social Feb-Sept

Click on graph to see full size

Although people may not be heading directly to Groupon’s site, according to our data, they still talking about deals and passing them around more than ever. There is some discussion re the business side of things, notably Groupon filing for IPO at the beginning of June and their Amazon deal earlier in the year. But a closer analysis of individual mentions still appears to be mainly people passing on deals and boasting about those they’ve bought.

An interesting analysis which we haven’t looked at before, is the location of deals and their popularity. By taking the most commonly associated city names with Groupon, we’ve analysed where the deals have been most talked about this week:

Fig 2. Wordcloud to show worldwide cities mentioned near Groupon

Groupon - Location

Click the image to see full size

 

Here’s the breakdown:

  1. London
  2. New York
  3. Wall Street
  4. Edinburgh
  5. Manchester
  6. Los Angeles
  7. Cambridge
  8. Las Vegas
  9. Sheffield
  10. Southampton
  11. Nottingham
  12. Chicago

Clearly, a mention of Wall Street is probably more likely to refer to their floating on the stock exchange rather than bankers getting good deals on Brazilian hair straightening treatments, but the rest of the cities seem to be genuinely where most deals are discussed.

Conclusion? the majority of Londoners must have at least two pairs of feet…. Surely there are only so many fish pedicures you can endure with one!

The Sauce

Something for the weekend:

Hope you enjoyed the Friday#, have a great weekend.
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