A new survey shows that 95% of businesses that use group buying websites to sell products or services are happy with the results of their promotions.

According to a new Telsyte study, businesses are highly satisfied with the results of their promotions in group buying websites like LivingSocial or Groupon.

The independent research shows that 95% of the businesses who used group buying websites to sell their products and services are happy with the results and 85% have stated that they will run another campaign, though most of them have stated that would try a different website.

The study reports that group buying campaigns have brought new customers and increased foot traffic for more than two thirds of the surveyed businesses.

Though there seems to be the impression that businesses are often dissatisfied with the results of their group buying campaigns, “the group buying market is proving to be a sustainable marketing sector and a real opportunity for Australian businesses,” said Sam Yip, Telstyle Senior Research Manager.

The results of the Telsyte survey echo those of a recent LivingSocial Australia report in which 95% of respondents stated that their group buying campaign has brought them new customers and 80% said their campaign brought them more new customers than any other marketing campaign they tried before.

Still, the Telsyte survey shows that for more than one in five businesses, group buying was the first kind of mass marketing they ever used.

A dramatic growth

According to an estimate by Telsyte, the group buying industry in Australia has grown 72% last quarter and by the end of 2011 will be worth $400 million.

“Group buying is clearly a major hit with Australian consumers and the dramatic growth in the industry demonstrates how digital channels and the rise of social commerce are underpinning significant shifts in consumer behaviour,” stated John Butterworth, CEO of the Australian Interactive Media Industry Association (AIMIA).

Group buying allows local businesses to offer discounts on their products and services if enough people buy their offers. What makes it so successful is that group buying relies on social networking sites, like Twitter and Facebook.

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