Groupon is only 2 years old. However, it’s one of the biggest companies in local enterprise marketing. Google has offered over $ 5 billion for Groupon’s enterprise. If the deal passes through, Google would be expanding its local-search dominance, but expand its small and medium business market.
Exactly where Groupon is located
Started in Chicago, community enterprise marketer Groupon has been increasing exponentially within the last two years. Yearly, half a billion dollars is made in revenue while the business hires 2,500 individuals to work all over the world. The enterprise model is simple — the company presents one discounted package each day, e-mailed to subscribers. Groupon is a fantastic 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 buy are found by the buying habits and demographics of those associated with Groupon.
Problem with local internet search and Google
Small and medium local enterprises are hard to get to by Google even though it is a leader in web search. There is expected to be a drop in paid local search on Google. Within the next five years it will drop about 20 percent. Small businesses tend to use and then drop Google advertising and sponsored search outcomes. Community companies only make up 18 percent of Google's ad revenue. There is also Facebook now competing with Google for community companies. Facebook Places is what began this competition. Anti-trust investigations in Europe are hitting Google because of the rankings of search engine results. The company, if found at fault, might lose lots of revenue.
What would take place using the Groupon/Google Deal
Groupon might do well to accept Google's $5.3 billion offer. The deal would be great for both companies. Groupon, a relative infant within the tech world, might get a huge return on its first investment. The Customer data is what Google really wants. Things like spending habits, pricing data and even consumer e-mails would be accessed. Google would likely use the possibility to continue its expansion beyond simple search and paid search revenue. There is no surprise in the package taking place. Google, in 2009, wanted to purchase Yelp. There is a difference though with the Google-Groupon package. Local buying options would be changed for many consumers.
Information from
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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