Hitwise: Groupon Is Getting 79% Of U.S. Group-Buying Visits Vs. 8% For LivingSocial
As Groupon weighs a $5 billion+ acquisition offer from Google and LivingSocial is believed to be about get a $100 Million to $150 million cash infusion from Amazon, it is instructive to look at the difference between the two companies. Hitwise looked at a 81 group-buying sites and came up with the chart above, which shows that Groupon commands 79 percent of U.S. visits to the group buying category, whereas No. 2 site LivingSocial only has an 8 percent share.
This is what market leadership looks like, and explains why Google may be willing to overpay for Groupon. In general, the Internet coalesces around market leaders for different categoriesâ€”the gorillas. And the gap between No. 1 and No. 2 is usually vast. It was true in auctions (eBay), e-commerce (Amazone), search (Google), and social networking (Facebook). And it will happen in social commerce as well.
Although, earlier today, LivingSocial CEO Tim O’Shaughnessy noted at the SAI Ignition conference that LivingSocial is on track to do $500 million in revenues next year (it wasn’t clear if he was talking about the gross value of deals going through LivingSocial or the actual revenues that will be booked by LivingSocialâ€”whereas Groupon will do well above $500 million in top-line revenues this year). What do you think? Will social commerce be yet another winner-take-most market?
- The US Group Buying Universe [Infographic]
- Hitwise: Visits To Black Friday Sites Up 18 Percent, Searches Up 31 Percent From Last Year
- Hitwise: Google+ Approaches 50 Million Monthly Visits
- LivingSocial: Groupon’s Not The Only Company That Can Hire A CFO
- Group Buying Industry In U.S. Estimated To Grow 138 Percent To $2.7 Billion This Year