US consumer spending on online deals (daily deals, instant deals, and flash sales) is forecast to reach $3.6 billion in 2012, up 86.9% from the estimated $1.8 billion spent in 2011, according to a report by BIA/Kelsey.
However, the forecast also signals a maturing market. Spending on deals is projected to grow 23% in 2013, followed by mid-single-digit growth over the following three years, translating to a compounded annual growth rate (CAGR) of 19.8% over the next five years, reaching $5.5 billion in 2016.
Below, other findings from the latest wave of BIA/Kelsey's Local Commerce Monitor (LCM) study of US small businesses.
Merchant Adoption of Deals
More than one-quarter (26%) of small businesses surveyed say they are "very likely" (15%) or "extremely likely" (11%) to participate in a deal in the next six months. An additional 24.3% say they are "somewhat likely" to do so, signaling that more than one-half of the small businesses surveyed have a favorable view of deals.
"After astronomical growth in 2012, the online deals marketplace is showing signs of maturity," said Peter Krasilovsky, vice-president and program director at BIA/Kelsey.