Groupon is only 2 years old. However, it is one of the biggest businesses in community enterprise marketing. Google has offered over $ 5 billion for Groupon’s enterprise. This can be a strategic move for Google. Small and medium businesses are expected to move away from search marketing, and this would help Google give them another choice.
Local Groupon starting out
Started in Chicago, community business marketer Groupon has been increasing exponentially within the last 2 years. Every year, half a billion dollars is made in revenue while the business hires 2,500 individuals to work around the world. Every day, a discounted offer gets sent to e-mailed subscribers. That is the way the enterprise works. Customers are brought in to small and medium local businesses with Groupon. The goal of Groupon is to get deals to customers that they are more likely to purchase. Tracking buying habits and demographics is part of the way to do this.
Google's issue with local search
Though Google is the major leader in web search, it has an issue targeting small and medium community businesses. Within the next 5 years, the paid local search on Google is expected to go down 20 percent or more. Small company will use Google advertising and sponsored search results. Then they will drop the company. Local businesses only make up 18 percent of Google's ad revenue. The Facebook Places launch has Facebook competing with Google for community companies. Anti-trust investigations in Europe are hitting Google due to the rankings of search motor outcomes. The company, if found at fault, might lose a lot of revenue.
The particulars of the Groupon/Google package
Both corporations might benefit if Google's $5.3 billion offer goes through to Groupon. It seems like Groupon has not been around for very long. The small investment might get it a huge return. Customer data such as consumer e-mails, pricing information and spending habits would be things Google might be able to access. Google would likely use the opportunity to continue its expansion beyond simple search and paid search revenue. In 2009, Google tried to purchase Yelp for the exact same reason which is why this deal isn't new. The difference is that if the Google-Groupon buyout does go through, customers could well see an international-sized change in their community buying options.
Articles cited
All Things Digital
kara.allthingsd.com/20101129/googles-groupon-offer-5-3-billion-with-700-million-earnout/
Adage
adage.com/digital/article?article_id=147349
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