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Published April 5th 2011

Living Social's $3bn valuation

Since the end of 2010, when Amazon invested $175m in Living Social – the group buying website has been closely watch by investors.

We have a look at livingsocial’s journey through social media from it’s Amazon investment to today’s news on its $3bn valuation. What does the investment and new valuation mean for consumers and is it only as good as the offers it pedals?

Fig 1. Volume of mentions for livingsocial.com

Looking at the history graph that the biggest increase in regular chat was prompted by their Amazon voucher deal collaboration on January 19th following. More interest was generated on Feb 4th with their pre-superbowl ad. Back to the deals on 2nd March as they offered two cinema tickets for just $9 followed by their very timely Japan earthquake donation deal on March 17th. Despite their more regular traffic, they are doing little in catching up with rival Groupon and the majority of spikes are related to ‘good deals days’.

Fig 2. Living Social vs Groupon – social media chat

Major spikes in Groupon traffic:

  • 21st Jan – Google offers ‘Groupon clone’
  • 7th Feb – Groupon’s Superbowl ad
  • 28th Feb – Groupon targets Chinese Market
  • 9th March – Cash registers may get a Groupon button (apparently..)
  • 18 March – Groupon’s $25bn valuation

Since Groupon spurned a $6bn takeover by Google earlier this year, the business is rumoured to have been valued at $25bn, higher Google’s $23 billion market value when it went public in August 2004.

So does all this talk of investment and rivalry make the deals better? Unless bi-weekly fish pedicures are your thing, not really.

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From May 8th, all Crimson Hexagon products are now on the Brandwatch website. You’ll find them under ‘Products’ in the navigation. If you’re an existing customer and you want to know more, your account manager will be happy to help.