70% of Canadians can name at least one daily deal website

70% of adults in Canada have heard of at least one online daily group deal site, according to global market research firm Synovate's recent omnibus survey.

Groupon was of course the best known site (50%), followed by Kijiji Daily Deals (31%), WagJag (25%) and RedFlagDeals (20%). Awareness of group buying companies was highest in Ontario and lowest in Quebec, with adults aged 18-34 and 35-44 more aware, as well as English speakers and households with children under 18. Men and women are equally aware.

Of the 70% who are aware of online daily group deal sites, one-third indicated that they had actually purchased from one of the sites. Those in Ontario and British Columbia showed the highest level of purchasing from an online daily group deal site. Among the multitude of deal sites, Groupon attracted the most purchasers, at 18% of adults nationally who are aware of such a site. Usage of Groupon was highest in BC and the Prairies, as well as being especially high among 18-34 year olds.

Adrian Murphy, Vice President of Syndicated Research North America for Synovate said, “Consumers generally seek to get the most value for their money, which is the impetus behind the development of online daily group deal sites. The concept may help retailers and manufacturers save on their advertising budgets and at the same time reinforce brand and product awareness – potentially a win-win situation all around.”

With a growing number of daily deal sites comes more variety of shopping choices.  Food & Drink is the most popular category, bought by 44% of those adults who have ever purchased from a daily group deal site. Beauty & Spa was the second most popular category (21%), along with Sports & Recreation (16%) and Art & Entertainment (15%). Males were more likely to have purchased a deal on Food & Drink and Sports & Recreation, while women showed a higher preference for deals on Beauty & Spa than did men.

The source for this survey was Synovate Canada’s bi-weekly eNation omnibus program, which also found that seven out of ten online daily group deal purchasers agree that buying such deals saves them a lot of money.  Only 14% feel that they spend too much money on daily deal websites. Close to two thirds of deal site purchasers say that they are more willing to try new things through online deals, particularly 18-34 year olds. Interestingly, 33% of those who have purchased from a group deal site state that they have a lot of unused deals.

“The discounted pricing and safety-in-numbers concept that is the essence of online daily group deal sites provides strong incentive for consumers to actively seek out such deals,” said by Asad Amin, Research Manager and lead for the omnibus program at Synovate Canada.

On average, purchasers buy about  two online daily group deals a month. 49% of daily deal buyers will wait for the deal to become activated before making a purchase. 72% of purchasers agree that they read all the fine print of the online daily group deal before making a purchase; this activity is much higher among females (79%) than males (64%). More than half (55%) believe that online group deals make great gifts.

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