Group Buying on the Decline in Australia

Source: Business Marketing Blog
Around 12 months ago group buying was being heralded as the great new growth channel for digital... An easy way to take advertisers money and excess stock... a win / win. Perhaps not...

In 2010 the industry sparked from nothing to $377 million in less than 12 months. It was "the fastest growing retail platform in Australia” (IBIS World Group Buying Report, 27th April 2011)

The market grew by 28% to $400M in 2011 but has matured a lot since.

Move forward to 2013 and the industry is undergoing a fundamental shift with Spreets stopping their service, revenue falling for 3 consecutive quarters, and traffic to almost all sites in decline.
Group Buying Audiences; Nielsen Answers 2013

Consumers frustrated with poor experiences from local businesses, local businesses fed up with the lack of repeat customers, over-saturation of sites and advertisers like Woolworths and Harvey Norman trying their hand at deals all having an impact.

It's not all doom and gloom though according Telsyte suggesting travel and national based deals have actually stabilized this decline and will deliver it overall year on year growth.

Either way, having access to legitimate consumer data in the Australian market is a real asset for the likes of Spreets/Yahoo. If one thing characterizes the group buying industry, it's a willingness to experiment with buying models that excite consumers, and continuous evolution.


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