BIA/Kelsey: Consumer Spending on Deal-a-Day Offers Likely to Reach $3.9B in U.S. by 2015

Analysts will highlight details from new forecast during a Daily Deals SuperForum at Interactive Local Media East, March 21-23 in Boston; LivingSocial CEO Tim O’Shaughnessy to keynote

CHANTILLY, Va. (March 3, 2011) - BIA/Kelsey, adviser to companies in the local media industry, released a new forecast today on U.S. consumer spending on deal-a-day offers, which the firm expects will grow from $873 million in 2010 to $3.9 billion in 2015, representing a 35.1 percent compound annual growth rate (CAGR). While this is the most likely growth case, BIA/Kelsey suggests a number of variables will have an impact on the actual development of deal a day, such as growth in the number of cities/sites, registered users, transactions per year for the average user and the average price per transaction. Considering these variables, deal a day could grow to as much as $6.1 billion by 2015 (47.4 percent CAGR), while a very conservative outlook pegs the space at $2.1 billion (19.7 percent CAGR).

“Deal a day has experienced incredible growth during its three-year incubation period beginning in 2008,” said Mark Fratrik, vice president, BIA/Kelsey. “We expect this to continue as companies in the space are rapidly adding markets and increasing total user count. They are also subdividing existing metros to provide deals closer to where users live, which we believe will help offset any drop-off that may occur due to consumer fatigue as the novelty of the form fades.”