A new market report published today by Telsyte shows that multi-national group buying sites are driving strong industry growth with LivingSocial and Groupon growing 75% and 118% in the quarter, respectively. The group buying market grew from $123.9 million in Q2 2011 to $158.5 million in Q3 2011 representing a quarter-on-quarter increase of 28%.
The travel category has also contributed to market growth this quarter. Travel deals now account for 24% of total market revenue making it the largest deal category.
Year-to-date the market has generated $320 million and is on track to significantly exceed Telsyte’s market forecast of $400 million for the 2011 calendar year.
The top eight group buying sites (LivingSocial, Scoopon, Groupon, Spreets, Cudo, Deals.com.au, OurDeal, and Ouffer) continue to generate over 90% of the total industry revenue. The number of group buying sites has grown four-fold in the past six months from 20 sites to more than 80 sites now in operation.