Recently, there is a new advertising model created by Groupon. Its major attractions include high discount and e-coupon as transaction object. In addition, it is presented as an online group-buying business model and usually has a limit on transaction volume. Due to the prosperous growth of Groupon advertising model, this study explores what factors affect the performance of Groupon advertising model based on the empirical data and literature review. Based on the literature review and preliminary analysis of the collected empirical data, we proposed seven factors which may affect the performance of Groupon advertising model. They are discount, price, limit on transaction volume, urban income, population density, threshold of transaction and product category. These factors were included as independent variables in the regression model. The results indicated that discount, urban income, population density and threshold of transaction have significant effects on advertising performance. Among them, the threshold of transaction has the most significant impact. It indicates that setting a threshold of transaction will facilitate the transaction volume. In addition, the results also indicated that different product categories result in different performance. However, the population density has no significant impact on the advertising performance.