Marketers to Target Specific Demographics with Daily Deals

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Few media formats are as hot as the daily deal sites this year. Recession-weary consumers are looking for a way to enjoy an outing or a restaurant experience at a discount. And marketers are turning to this channel in an attempt to drum up business from  new customers. Now that the deal format has a track record, marketers can benefit by understanding which consumers are drawn to daily deals and which products and services sell best.

The Nielsen Company is out with some new numbers on this topic. In particular, the company’s researchers looked at Groupon and Living Social. The daily deal phenomenon tends to attract women and affluent online consumers. But the customer base of the two industry giants differs slightly.

  • Living Social clients with a college degree: 46%
  • Groupon clients with a college degree: 39%
  • Living Social clients who earn $150,000: 49% more likely than average
  • Groupon clients who earn $150,000: 30% more likely than average

In addition, Groupon’s client base is heavily concentrated in New England while Living Social has seen its fortunes rise in the South Atlantic, Mountain and Pacific regions.  And Living Social also tends to have a somewhat younger audience base. However, this statistical detail may correlate to the general ages of consumers living in the regions where Living Social is doing well.

Consumers who frequent the daily deal sites share some common interests.  Here are the percentages of site visitors who present merchandising opportunities in these specific categories:

  • Gardening 46%
  • Home/Repair renovation 35.2%
  • Landscaping 32.8%
  • Gourmet cooking 29%
  • Crafts 20.7%
  • Knitting/sewing 20.1%

As marketers begin using daily deal promotions, they’ll also appreciate knowing that this consumer base is very active online, often maintaining more than one social profile and generating new content. This activity can help spread the news of and boost the success of daily deal promotions.

[Source Deal Me In. Blog​.Nielsen​.com. 26 Apr. 2011. Web. 11 May 2011]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.