Groupon’s revenues in 2010 surged to $760 million last year, compared to only $760 million in 2010. The Wall Street Journal reports that offshore users accounted for over a third of the daily deals giant’s revenues, and covered CEO Andrew Mason’s expectations for 2011.  “The email, sent by Groupon Chief Executive Andrew Mason to staffers in early January, also reveals the founder’s grand ambitions for the company he started three years ago. Mr. Mason writes that he hopes to achieve “billions in revenue” in 2011.”

Groupon has expanded to more than 565 cities and has 4,000 employees, compared to only 120 employees and 30 cities in 2009. Nevertheless, Groupon’s CEO doesn’t underestimate his company’s opponents and warned in his message of the fierce competition Groupon may face this year.  Moreover, Mason wrote that he hopes for “at least $1B in revenue from new products we launch in 2011, not just the current daily email,”  hinting at Groupon’s aspirations for the coming year. Location-based services, ads and of course daily deals became an almost immediate sensation on the consumer end, and Groupon will continue to ride the location-based wave with enhanced, perhaps even more social location-aware services.

Groupn’s CEO hopes to reach the $1 billion revenues mark this year, but competitor LivingSocial has more short-term plans to extend its user base. All Things D reports that LivingSocial has created a couple of new commercials, due to air during the Oscars on Sunday. Unlike the Super Bowl ads, LivingSocial is focusing more on the deals this time rather than using the originality card.  This card popped up in the form of a somewhat obscure ad featuring gruff man turning into a crossdresser, but now that consumers have adopted to the location-based services concept, LivingSocial’s approach to brand management had changed.

“The two new spots are a little more on point.  For example, in “We’ll set the stage, you play the part,” a man and a women perform a number of quick costume changes as they transition through a number of scenes, ranging from a restaurant (55 percent off fine dining), to a hair salon (72 percent off) to a dance floor (where they save 62 percent on tango lessons).”

Hundreds of millions of users consuming location-based deals, ads and services can certainly make a big ripple, and all the way to Google, Nokia, Yahoo, Gowalla and other industry giants. They all conferenced in the second annual Location Business Summit held in Amsterdam, and provided a very good indicator of just how big of an effect LBSs had on these tech giant’s business models and approach to the market.