1© comScore, Inc. Proprietary and Confidential.

Group-Buying/Daily Deal market on a steep upward trajectory

As the Group-Buying/Daily Deal market emerges, low barriers to entry enabling hundreds of new sites to crop up. But is there really room for everyone?

25% of deal sites have folded or consolidated, but new deal sites still

outpacing attrition

For a copy of full Local Offer Network report, please email research@localoffernetwork.com

2© comScore, Inc. Proprietary and Confidential.

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Trend in Unique Visitors (000) to Groupon.com and LivingSocial.comSource: comScore Media Metrix, Aug 2009 – Apr 2011

Groupon.com

LivingSocial.com

Groupon & LivingSocial have both seen audiences grow ~3X over the past year

+250% vs. yr ago

+182% vs. yr ago

3© comScore, Inc. Proprietary and Confidential.

Groupon subscribers skew toward restaurant deals, while LivingSocial subscribers tended to purchase a variety of deals

Categories of Deals Purchased via Groupon or LivingSocial

Q. Which of the following types of deals have you purchased on Groupon/LivingSocial?Source: comScore Survey – April 2011

Restaurants & eating out

Groceries

Entertainment

Clothing & accessories

Books or magazines

Health & beauty care

Services

Electronics

Digital products

Furniture or home furnishings

Sport & fitness

Outdoor & garden

Jewelry or watches

Vacation/Travel

Other

None of the above

56%

32%

31%

26%

26%

25%

21%

16%

14%

13%

13%

12%

10%

10%

5%

2%

% of Groupon subscribers

Books or magazines

Restaurants & eating out

Entertainment

Clothing & ac-cessories

Health & beauty care

Digital products

Groceries

Services

Electronics

Furniture or home furnishings

Vacation/Travel

Jewelry or watches

Outdoor & garden

Sport & fitness

Other

None of the above

41%

39%

35%

33%

32%

28%

25%

23%

20%

18%

16%

16%

16%

16%

2%

1%

% of LivingSocial subscribers

4© comScore, Inc. Proprietary and Confidential.

How loyal are daily deal subscribers?

1 2 3 4 5 6 7 8 90%

5%

10%

15%

20%

25%

30%

35%

40%

Repeat Visitor Loyalty AnalysisSource: comScore Custom Analytics,

Nov 2010 to Apr 2011

Groupon LivingSocial

Number of Visits

Rep

eat

Vis

it P

erce

nta

ge

Groupon LivingSocial

18%

22%

Subscriber Churn Rate*Source: comScore Survey – April 2011

Repeat visitation among users is similar, but LivingSocial has a slightly higher

rate of churn among subscribers. Is daily deal fatigue a factor?

*Churn rate = No. of Past Subscribers / (No. of Current Subscribers + No. of Past Subscribers)