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Group Deal Offers Lead to Purchases in Canada

Group deal emails reach 42% of internet users in Canada, while almost one in 10 actually purchases

Daily deal sites have been taking a beating in the press as companies like Groupon and LivingSocial miss the lofty goals set by analysts, executives and investors. However, people still like a deal, and the news won’t deter consumers from participating in offers they find valuable.

While a lot of the initial hype has been followed by hand-wringing, a December 2011 report from Epsilon found that internet users in Canada were still buying and using group deals as recently as last summer. In August 2011, 42% of respondents said they received group deal emails daily and 9% said they made a purchase every few weeks.

Considering that Groupon, the most recognizable daily deal site worldwide, only launched its first Canadian market, Toronto, in April 2010—16 months prior to the survey—the level of uptake is impressive.

eMarketer estimates that in 2012, Canada will reach 26.4 million internet users and overall online buyer penetration will reach 60.8%. As online marketing channels become increasingly crowded, group deals remain an important touchpoint in a marketer’s repertoire.

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Check out today’s other articles, “Where in the World Are the Hottest Social Networking Countries?” and “The Effect of Mobile on the Path to Purchase.”

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