When it comes to the daily deals market, there are now dozens of companies consumers can choose from, but at the end of the day, the two largest and most important ones remain Groupon and LivingSocial. I’ve long had the feeling that the two companies attract very different audiences and a new study by comScore now provides some data that validates this hunch.
According to comScore, Groupon is most popular in the Midwest and Pacific, while LivingSocial’s audience skews more towards the East Coast. This split is most pronounced in the New England states.
The two companies also differ widely when it comes to its customer’s demographics. Groupon skews younger and female, while LivingSocial’s users tend to be middle-aged and more equally divided between genders.
Unsurprisingly, comScore also found that these two companies have different advertising strategies. For daily deals sites, customer acquisition is the single most important aspect of their business plans (besides finding participating merchants). LivingSocial tends to spend the majority of its online marketing budget (73%) and the five largest networks in the U.S. (AOL, Google, Facebook, Microsoft and Yahoo).
Groupon, on the other hand, is the exact mirror image of this. The Chicago-based company spends 69% of its online budget on ads outside of these five networks. It’s worth noting, though, that Groupon actually spends more on Google, AOL and Facebook than LivingSocial does. LivingSocial just spends the lion share of its display advertising budget on Microsoft and Yahoo Sites, which skews the overall data towards these top networks.