Daily Deals sites are attracting millions of customers. It's a lively marketplace with hundreds of companies competing for a limited number of users and businesses willing to give them a try. How lively? It's hot. According to researchers at Lab42, there are more than 660 deals sites online today. But is this sustainable? Certainly not all those sites will survive. Some of us here at Mashable are questioning whether the Daily Deals era is coming to a close.
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The number one player in the market, Groupon, has 115 million subscribers, but saw a 50% dip in its web traffic since July, 2011, according to Experian Hitwise. And Friday we reported that hundreds of members of the Groupon sales team filed a class-action suit against the company for allegedly not paying overtime. Meanwhile, Groupon's second-place competitor LivingSocial saw a 27% rise in traffic.
Sounds lively. Maybe the Daily Deals market is a bit too lively -- according to Pricegrabber, even though 44% of consumers use daily deals websites, 52% of U.S. customers are feeling overwhelmed by the proliferation of daily deals offers clogging their email boxes.
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Given that mixed landscape, how are people using daily deals sites right now? That was the question Lab42 asked of 500 daily deals users, determining which sites they use the most, how diligent they are at checking for new deals, and how much money they're spending on them:
Infographic courtesy Lab42
This story originally published on Mashable here.
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