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Posted at 12:25 PM ET, 01/28/2011

LivingSocial gaining on Groupon

By Hayley Tsukayama

Two months ago, LivingSocial, the Chinatown-based group discount coupon site, was hardly a blip on Groupon's radar.

Now, after a monster Amazon gift card deal that catapulted the company into the limelight, LivingSocial now sees more than half the visits that the industry leader does.

(Chief executive and co-founder Tim O'Shaughnessy is the son-in-law of Post Co. chairman Donald E. Graham. The Post also has a marketing partnership with the firm, as seen on this site's home page.)

When Experian Hitwise, analyzed visitors to the two sites a little under two months ago, Groupon visitors outpaced LivingSocial visitors at a rate of ten-to-one. A new analysis shows that, after the Amazon deal, the company saw a surge in subscribers that's continued to climb 80 percent. Meanwhile Groupon has seen its visitors decline by 20 percent.

The group coupon market is getting hotter and hotter, as Google and Facebook have both indicated that they're poised to jump into the fray.

By Hayley Tsukayama  | January 28, 2011; 12:25 PM ET
Categories:  Shopping  
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Comments

Wonder if there is a little regret within Groupon for not acting upon Google's $6 billion offer a few weeks back.

Posted by: engeb0131 | January 28, 2011 1:26 PM | Report abuse

LivingSocial definitely got a boost from their recent deal featuring Amazon gift cards. Their partnership with Amazon has gotten them a lot of attention.

Another great site for these kinds of deals is http://www.dailydealpool.com, a website that complies all the daily deals and sales in your area and sends them to your inbox, ensuring you don't miss out on a great deal near you!

Posted by: megamelfina | January 28, 2011 4:23 PM | Report abuse

Right now LivingSocial is offering me discounts on skydiving and Botox.

Something tells me that these companies are in for a big contraction once the novelty wears off and people realize they aren't really offering anything very useful.

Posted by: tomtildrum | January 28, 2011 8:49 PM | Report abuse

At some point soon, businesses will realize that they give away too much with these sites and that there are better options on sites like www.freefu.com.

On freefu.com, it is free as long as the business offers some sort of free offer, not much different from a Groupon/Living Social offer in terms of the actual offer and on freefu, the business doesn't have to share any of the sales revenue. freefu.com, the better deal site

Posted by: innovatefl | January 29, 2011 2:07 AM | Report abuse

There are so many players, and the barriers to entry are not very high, so the industry will change around significantly over the next few years.

Posted by: CoverDeal | January 29, 2011 8:46 AM | Report abuse

This site offers top deals organized by category and manufacturer. http://amimu.com

Posted by: steve97 | January 30, 2011 8:49 AM | Report abuse

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