BIA/Kelsey Forecasts U.S. Consumer Spending On Online Deals To Reach $3.6B in 2012

Spending On Online Deals To Reach $3.6B

BIA/KELSEY forecasts U.S. consumer spending on online deals (including daily deals, instant deals and flash sales) to reach $3.6 billion in 2012, an increase of 86.9% over 2011. BIA/KELSEY projects 23% growth in deals spending in 2013, followed by mid-single-digit growth in later years. This translates into deals spending climbing to $5.5 billion in 2016.

"After astronomical growth in 2012, the online deals marketplace is showing signs of maturity,” said VP/PD PETER KRASILOVSKY. "But market leaders continue to exhibit growth as market awareness and penetration spreads in the U.S. and especially, internationally."

Going forward, BIA/KELSEY envisions online deals will become an anchor for a platform of non-advertising small business services. These services include instant mobile deals, loyalty products, promotions, reputation management, transaction processing and e-commerce. While these services have already been introduced to the marketplace, revenues have not made a significant impact on overall deals revenues to date.

Merchant Adoption of Deals

Findings from the latest wave of BIA/KELSEY’s Local Commerce Monitor (LCM) study of U.S. small businesses reinforce the strong continued interest in deals participation by local and small businesses. Over one-quarter (26%) of small businesses surveyed said they are either "very likely" (15%) or "extremely likely" (11%) to participate in a deal in the next six months. An additional 24.3% said they are "somewhat likely" to do so, indicating more than half of the small businesses surveyed have a favorable view of deals.

BIA/KELSEY is presenting highlights from LCM Wave 16 during a briefing to its advisory services clients at the SMB Digital Marketing 2012 conference in CHICAGO.

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