Groupon is only 2 years old. However, it is one of the biggest businesses in community enterprise marketing. Search giant Google has not only noticed, but has made a $ 5.3 billion offer for the business. If the package passes through, Google might be increasing its local-search dominance, however expand its small and medium business sector.
Community Groupon starting out
In the last two years, Chicago community business marketer Groupon has grown a ton. You will find 2,500 individuals employed by the business all over the world. Annually, it makes half a billion in revenue. Each day, a discounted offer gets sent to e-mailed subscribers. That is the way the enterprise works. Groupon is a great way for small and medium local business to get well known. This is how customers get brought in. Deals that subscribers are more likely to purchase are found by the buying habits and demographics of those associated with Groupon.
Google having problems with community search
Small and medium local businesses are hard to get to by Google even though it’s a leader in web search. Paid local search on Google is expected to drop by 20 percent or more over the next five years. Google advertising and sponsored search results are what small companies want at first before dropping it. Only 18 percent of Google’s ad revenue comes from community companies. The Facebook Places launch has Facebook competing with Google for community companies. Anti-trust investigations in Europe are hitting Google because of the rankings of search engine outcomes. The company, if found at fault, might lose a lot of revenue.
What would happen using the Groupon/Google Deal
Groupon might do well to accept Google's $5.3 billion offer. The package would be good for both companies. Groupon, a relative infant in the tech world, might get a huge return on its first investment. Customer data for instance consumer e-mails, pricing info and spending habits would be things Google might be able to access. The simple search and paid search revenue is something Google wants to expand from. This is what the deal might allow to happen. The deal is not anything new; in fact, Google attempted to purchase Yelp for many of the very same reasons in 2009. The change in buying choices would be what happens if the Google-Groupon deal actually happens which creates a difference.
Citations
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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