CTR Case Study: Groupon VS LivingSocial
Groupon and LivingSocial are competing on almost every major advertising medium to capture emails. The one i’m most familiar with is Facebook. When advertising to the masses on Facebook, your targeting is slim to none, but you still want mega CTR! Whats the easiest way to achieve this? This was the question Groupon/Living Social were faced with.
They both have been using weird/wacky images or sexy images in their Facebook ads and everyday i see so many of them that i just had to find out for myself how they were performing.
I wanted to know though which types of images will bring in a better CTR when advertising to such a wide demo as the whole United States. So i ran a test with 16 images — 8 wacky images consisting of anything weird/random, and 8 images of good looking women. I used some images directly from the Groupon/LivingSocial campaigns and found some myself. The 5 images below had the top CTR!
As an affiliate it’s hard to turn a profit advertising daily deal offers to the masses (you gotta go niche!), but to Groupon/LivingSocial it’s worth every penny.

After the top 5 images, every ‘wacky’ image outranked every ‘female’ image in CTR.
What To Conclude?
Overall that wacky images do better in terms of CTR! The downside is wacky images usually don’t draw a relation to whatever your advertising (whether it be daily deal offers or anything else), so it’s your job on your landing page to connect a reason behind the wacky images with your offer so you can convert the most amount of leads possible.
The next step is to remix girls and wacky stuff
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Like you said you need to make a connection to those images some how. I found that I can get penny clicks, but get no conversions as most people are just click to see a larger version of the funny image (my opinion). The thing with facebook traffic is that if you can make some type of connection and even get a very very low conversion rate, with a high CTR it can be profitable.
I was thinking the same as John, ‘…most people are just click to see a larger version of the funny image..”
i see that tilted house pic on facebook like everyday
well in that case just have girls going whacky or gross stuff and take advantage of the ctr.. example:
http://t2.gstatic.com/images?q=tbn:ANd9GcRQzpghDUL5yHEb1pC_YvlLnAjK8W3mbmjskXtjyRIOrXIyaz17&t=1
Girlfriend a fat slob eating away your paychecks? Join match for sexy singles.
http://t1.gstatic.com/images?q=tbn:ANd9GcQahpN7jAu5icfQz7EpdbaxeAHGjqMqhakDntV83WVMxb2kb627mA&t=1
Sick of dating manly women that can bench more then you? Meet feminine cuties at cupid.
http://t3.gstatic.com/images?q=tbn:ANd9GcRcYJVtTim69y-01Z736pTjv8qnbsoJUUBs4pSAaBcfLv5JyT3q&t=1
Does your girlfriend like eating deep friend pig skulls? Meet the vegetarian sweetheart of your dreams.
http://www.weird-websites.info/Weird-Jokes/Insults-and-Put-Downs/images/ultimate-insult-white-girl-picking-nose-pictures.jpg
Girlfriend a pig? Browse hundreds of profiles and meet classy women at ___.
Just some ideas but mainly for the lulz
Yeah, you better have a good reason behind those pictures or it will be a waste. Still funny and a good case study to see what people are clicking on.
How does groupon get those images approved they are not relevant to the offer LP? Do they get better treatment since they are a big company.
I’m sure they get special treatment. They are spending millions most likely.
True points, it’s even better if you can coordinate the relevance of the wacky/odd/outrageous picture and tie it into your site. Better conversions.
I’ve just completed extensive research on the major online couponing sites and one early conclusion I have reached is that LivingSocial is going to out perform Groupon. Reason? LS has great customer service (after all, Amazon, who also owns Zappos, has a stack in them). Plus LS does not rely on a hard sales approach as does Groupon. There are many predictions that LivingSocial will surpass Groupon in 2012 and I agree. BTW, my most recent post is at – http://www.406strategies.com/2011/05/04/the-a-student-living-social/ – love to hear your input.