Daily Deal Sites: Is the Groupon Bubble About to Pop?

Logo for daily deal site Groupon

Are the Groupon days over?

Think back for a minute to 2008 when Groupon opened shop. Can’t remember? If you’re like me, you probably don’t recall the first time you signed up to receive daily deals in your inbox–it just sort of happened. And, if you’re like me, you may have even thought “how can this type of site possibly last?” But, if you’re like me, you drank the Kool-Aid and before you knew it, you were getting Groupon emails everyday, were using the Groupon app and eventually signed up with other daily deal sites like LivingSocial or DealChicken or one of the other nearly 800 daily deal sites.

According to the infographic below, the Groupon business model is starting to crumble with one in three daily deal sites having already failed. Groupon itself has been failing pretty miserably for the last year or so. In fact, between a saturated market and retailers who claim to ‘hate’ Groupon for the small profit margins the deals bring in, Groupon could soon be history.

I think it’s pretty clear deal sites will continue to close left and right. However, I’m not so sure the end is coming as fast as this infographic claims. What do you think? Does Groupon have time to turn business around and get back in it for the long hall? Will another daily deal site rise to the top? Or is it just a matter of time before the entire ‘Groupon Bubble’ bursts?

Death of Daily Deals Infographic

Infographic by CreditScore.net

About these ads

About wheeler blogs.

Eric D Wheeler is a recent graduate from St. Cloud State University with a Masters Degree in Mass Communications with emphasis in PR and Advertising. Also interested in social media, marketing photography & traveling! View all posts by wheeler blogs.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 2,390 other followers

%d bloggers like this: