Google makes a deal for Groupon business

Groupon is a new, however respected local enterprise giant. Google has offered over $ 5 billion for Groupon’s business. If the package goes through, Google might be increasing its local-search dominance, however expand its small and medium enterprise sector.

Exactly where Groupon is located

Within the last two years, Chicago local enterprise marketer Groupon has grown a ton. The business has 2,500 staffers across the globe and pulls in half a billion dollars in revenue each year. Subscribers get a discount e-mailed to them as the enterprise offers one discounted offer every day. Usually, small and medium community businesses use Groupon to bring customers in with their deals. Deals that subscribers are more likely to purchase are found by the buying habits and demographics of those associated with Groupon.

Google having troubles with community search

Google may be really great as the leader in web search. However, medium and small community businesses don't get targeted by Google at all. There is expected to be a drop in paid local search on Google. Within the next 5 years it will drop about 20 percent. Small companies tend to use and then drop Google advertising and sponsored search outcomes. Community businesses only make up 18 percent of Google's ad revenue. The Facebook Places launch has Facebook competing with Google for local businesses. Anti-trust investigations in Europe are hitting Google because of the rankings of search motor results. The company, if found at fault, might lose lots of revenue.

The way the Groupon / Google package will work

Both corporations would benefit if Google's $5.3 billion offer goes through to Groupon. Groupon, a relative infant within the tech world, might get a huge return on its original investment. Consumer data for instance consumer e-mails, pricing info and spending habits might be things Google would 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 buy Yelp for the very same reason which is why this deal is not new. There’s a difference though with the Google-Groupon deal. Community buying possibilities would be changed for many consumers.

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