Forrester Research Predicts Demise of Daily Deals

Posted on August 29, 2011

Forrester Research has released a report, U.S. Interactive Marketing Forecast, 2011 to 2016, that predicts the end of the daily deal category. The report says growth in spending by businesses in other categories will "kill off" the daily deals category. This seems unlikely in such a bad economy.

Forrester Research analyst Shar VanBoskirk says in the report, "Consumers will grow so conditioned to micro-impulse offers that they'll lose practice at considered decisions - in all walks of life, not just when buying spa treatments. Facing a cultural descent into maladroit judgment, employers (and spouses) will blacklist impulse deals to keep people intentional."

Deals and coupons are never going away. Forrester is right that there currently is a massive overload of daily deal sites, but it seems likely that one or two of them will survive. Retailers and restaurants can only afford to offer a limited amount of deals to attract new customers. Many of them may decide their advertising and marketing budget is better spent elsewhere. It seems impossible that there are enough bargains to support so many deal sites.
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