Google Deals Potential Blow to Groupon

Written by Meagan Lopez
Published on Jan. 27, 2011
Not landing that $6 billion Groupon purchase a few months ago hasn’t stopped Google from finding ways to boost its local advertising business. According to a confirmed report from Mashable, the search giant is soon to launch its own form of Groupon: an online deal site called Google Offers.

google

Google Offers will reach out to businesses with benefits like boosting a customer base, gaining exposure on Google ad networks, and getting paid quickly, according to the fact sheet obtained by Mashable. Like Groupon, the deals will arrive in daily emails to local consumers. Businesses only pay when people buy.

While the online deal marketplace is already saturated, a big player like Google has potential to come in strong. According to the Wall Street Journal’s Deal Journal blog, “Two advantages Google has are money, and the gravitas with local merchants to pull off a Groupon killer. If you’re a Greek restaurant in Boise, whose phone call are you going to return first: a sales representative from Groupon, or LivingSocial, or some other startup you haven’t heard of? Or Google?”

The upcoming launch comes as no surprise, not only because of Google’s failed earlier attempt to acquire Groupon but also with recent talk from Google executives hinting at such a decision. In an interview with MediaBistro this month, Google’s Marissa Mayer said, “We’re looking at how can we take this technology and put it to use, especially in the location space.”

In a confirmation of the report, Google told Search Engine Land, Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program. This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.

 

Feel free to leave comments at www.midVentures.com

Hiring Now
OCC
Big Data • Cloud • Fintech • Information Technology • Financial Services