A majority of businesses selling products or services through group buying sites were attracting more new customers than through any other means of marketing previously tried, according to analysts.
Analyst firm, Telsyte conducted an Online Group Buying Merchant Study 2011 based on a random survey of 359 businesses across all leading group buying sites in Australia.
The firm stated that Australian group buying site, LivingSocial Australia, with its two websites LivingSocial.com.au and JumpOnIt.com, reported similar findings from its recent survey of 211 merchants.
The findings showed 95 per cent of respondents said advertising with daily deal sites brought them more customers and 80 per cent indicated it brought them more new customers of any marketing channel they had tried before.
“A persistent myth about the group buying phenomenon is that sellers are generally dissatisfied with the outcomes of group buying campaigns; however, these results show advertising on a group buying site presents a real opportunity for Australian businesses,” Telsyte senior research manager, Sam Yip, said.
Telsyte estimates group buying in Australia to be worth about $400 million by the end of 2011 with the industry growing 72 per cent last quarter.