If you’ve been following our Daily Deal tracker recently, you’d know that the list has grown to over 110 Daily Deal companies across the US (running hundreds of different individual deals). How are these sites growing amidst an increasingly crowded space? One strategy has been verticalization, where Daily Deal sites target a particular “niche.”
We discuss various growth channels in detail in an earlier post, but simply put: Daily Deal sites grow largely through online advertising, so those services that can afford to pay the most for each individual signup end up growing the fastest. A key driver in this subscriber value is the number of deals purchased during the user’s lifetime, so by targeting a specific audience and increasing the conversion rate on each deal, the subscriber value will be higher.
Some verticals are more profitable than others. The chart above demonstrates the dramatic variance of average revenue for the top 25 most common deal categories (normalized for list size). If sites are able to target the more profitiable verticals, they can justify a much higher advertising spend than those targeting the general landscape of consumers.
Finally, these “niche” sites may be able to attract higher-tier merchants in the long run, who are seeking avid consumers for their specific industry (e.g., foodies, luxury consumer, mums), versus a general deal audience.
Below are some of the most popular niche sites and categories that we’ve observed through our research and experience in the Daily Deal space:
Whether you’re looking for a discount off a gourmet meal, free drinks or appetizers, or sometimes even half off a bottle of wine, dining niche sites are usually the best place to check. Restaurants love advertising here because they know they’ll get serious, savvy diners who care about food and may be looking for new places to try. Here are some of our favourite dining sites and a little about them:
- Beermenus – Has an extensive list of where to get beer in several U.S. cities and provides daily deals for beer flights and bar tabs. Check out this sample bar tab deal.
- BlackboardEats – Offers free codes to its subscribers to get freebies and discounts at top restaurants in New York, L.A., and San Francisco. Here’s a sample deal for a discount dinner in New York.
- InBundles – New York’s newest food-centered daily deal site. Check out this sample deal for half-off dinner.
- The Lunch Deal – Austin’s dining niche site that saves you at least 50% at local eateries while helping to feed the hungry through user referrals.
- Village Vines – A members-only niche site that offers discounts to some of New York’s most exclusive and famous restaurants. Check out this sample deal for half-off wine at Vai.
These aren’t your run-of-the-mill Daily Deal sites. Expect to see deals for higher quality brands, services, and products. These sites reach out to discerning buyers who want luxury products with modest to moderate discounts. Our favourites are as follows:
- Bloomspot – Offers high-end dining, spa, fitness, and lodging deals in a select number of U.S. cities with limited quantities. Check out this sample salon deal in San Francisco.
- Gilt City – The Daily Deal arm of luxury focused Gilt, offered exclusively in New York.
Health and beauty
If you’re looking exclusively for massages, manicures, salon treatments, or anything to make yourself more beautiful, these sites are for you. Many health and beauty niche sites not only offer amazing discounts, but can help narrow your search to find the exact service, salon, or treatment you’re looking for. Here are some of the best ones we’ve found:
- 25 Tuesdays – Offers a $25 spa deal every week in New York. Check out this sample massage package.
- Lifebooker – An in-depth list to deals in just about any health and beauty treatment imagineable in New York and L.A., sister site of Lifebooker Loot. Here’s a sample salon deal offered in New York.
- Wahanda – The British favourite that’s now offering top health and beauty deals all across the US. Here’s a sample spa package in San Francisco.
Lastly, there are Daily Deal sites out there for specific customers, such as mums. These sites have deals targeting mothers and parenthood, from beauty treatments to kids classes and baby toys. Check out some of these sites below:
- Certifikid – A D.C. area site focusing on family-centered deals and services
- Mamapedia – Offering deals for mums of all ages in a wide variety of products and services.
- Doodledeals – A NYC-centric kids’ deals site. Will be launching soon.
If you’re interested in more sites, be sure to check out our US Daily Deal page, which keeps a running list of all the daily deal sites online, both niche and catch-all. With so many out there, you’re sure to not only find exactly what you like, but get an amazing price on the service or product that you love.
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