iStrategyBlabs

LivingSocial: A peek into the analytics of world's biggest deal

We all heard about last week’s LivingSocial deal of purchasing a $20 Amazon gift card for a mere $10. Here @iStrategyLabs, it would have been blasphemy not to purchase one.

LivingSocial $10 $20 Amazon Deal StatisticsMany other people must have thought the same thing because 1.3 million deals sold in 24 hours. If you do the math, that’s 100,000 deals sold per hour, or even 80 deals sold per second. Believe it or not, that also means 1 out of every 212 Americans over the age of 18 bought one.

LivingSocial may have taken a hit for this deal, but can you put a price on the marketing value of such a campaign? How far did this deal really go? We pulled up some stats for you.

Traffic to their site skyrocketed. The Amazon deal page alone earned over 7,000 tweets and 45,000 shares on Facebook.

These share stats don’t even include the 1000+ major news stories and blog posts (such as NY Times, Mashable, ReadWriteWeb, and TechCrunch) that were also shared on an exponential level.

Social mention of LivingSocial exploded. January 19th saw an unmeasurable increase in LivingSocial’s social media mentions with a total of 4,670 mentions in just 24 hours.

LivingSocial $10 $20 Amazon Deal StatisticsGrowing the LivingSocial Brand. On January 19th, @LivingSocial Twitter followers grew by an unprecedented 4,639 (and that’s a whole lot more people to which to promote future deals).

LivingSocial $10 $20 Amazon Deal StatisticsSuccess? Until last week, Groupon held the title of most deals sold for a Gap deal ($25 for $50) selling 441,000 deals. LivingSocial had more than doubled that number with their Amazon deal.

10 Responses to “LivingSocial: A peek into the analytics of world's biggest deal”

  1. [...] This post was mentioned on Twitter by Peter Corbett , istrategylabs, Reilly Thomas Dunn, Joe Corbett, Stephanie Ryska and others. Stephanie Ryska said: LivingSocial: A peek into the analytics of world’s biggest deal http://bit.ly/hNePmf [...]

  2. Amber says:

    Amazing metrics! Like any frugal 20-something, I’m obviously loving this whole deal website craze, but with a competitor as big as Groupon I always worry about whether or not LivingSocial will make it! To add to your findings, I read somewhere that this Amazon deal sold at the rate of 85 per second – impressive. The success of this deal just goes to show that the combo of Amazon and LivingSocial might be quite a powerful match for Groupon. I’m definitely rooting for LS and will be on the lookout for what’s next from them.

  3. so this deal cost them 1,300,000 x $10 = $13,000,000

    That is an awful lot of money to spend on marketing.

    I wonder what they are thinking now. Was it worth the attention and social media buzz. Could they have capped it at 450k just to get title from Groupon. Maybe just offered $10 for $5.

    I know I could do an awful lot of marketing for 13 million dollars. This kind of strikes me as bubble material…

    Steve

  4. Diane says:

    Doesn’t this success bring into question the huge valuation put against Groupon? After all they have some fierce competition, and this product doesn’t inspire loyalty. People are looking for the best deals and they don’t care who offers them. Groupon doesn’t even really have first mover advantage. LivingSocial alone is offering killer deals, and up and comers like kgbdeals pose a threat. Just sayin, their valuation seems crazy to me.

  5. Joe Grossberg says:

    You’ve got a typo in the first sentence of this post. It’s “mere,” not “meer.”

    Also, the last sentence understates how much this beat the Groupon-Gap deal; LivingSocial-Amazon more than *tripled* it.

    P.S. Can you guys add a visual indication and JS validation to let people know name and email are required fields, before they submit this form? :)

  6. corbett3000 says:

    @joe grossberg you are my favorite and most demanding commenter. Yes we’ll add that indicator :/

  7. STEVEN MANDZIK it’s worth noting that LS didn’t lose anything in the deal. LS only made money. Any loss would be absorbed by the offering company, in this case Amazon.

    Before you state their loss it’s important to note that many of those coupons won’t be used to buy $20 necessities. Instead they will be used to fund $30 “nice to haves”, and $50 “one day” kind of buys. In other words, Amazon gave you $10 as an incentive to spend $20 or more than you might have spent without the coupon. This isn’t true for all the coupons, but it will be true for many.

    Lastly, let’s remember Amazon funds Living Social. So money LS makes, is essentially protecting Amazon’s previous investment in the company.

  8. @Steven–Don’t forget that Amazon is an investor in LivingSocial. It was $13 million spent on entirely SELF-SERVING publicity.

  9. @ DIANE

    Although I never challenged Groupon’s valuation, you raises great points about (1) people looking for the best deals, and (2) not caring who offers them. With an emphasis on the former, people come to LivingSocial, or any daily distributor for that matter, with an inclination to buy. This creates a low barrier to influence for brands utilizing online local coupon platforms. When users click on their daily deal email, they intentionally fall into cheap, near-by, easily accessible goodies. Amazon, for example, needed less to influence people to buy, since people were already immersed in the platforms micro purchasing culture. This fueled participants speedy purchasing of Amazon’s gift cards, costing only $10 bucks.

  10. are there statistics around what % of deals are shared with friends? and what % of buyers use their referral link to get their friends to buy the same deal?