Google tried to convince Groupon to accept a $6 billion buyout in December, but Groupon chose not to bite. Now Google is taking the booming online coupon business into its own hands, reports Mashable. Google Offers, a Groupon-like product that offers online discounts at local businesses for consumers, will soon enter the fray.
Google Offers a consumer win
Bargain shopping is the name of the game with Google Offers, and consumers who have shown that they will eat up 50 percent off discounts at online coupon companies like Groupon and LivingSocial are sure to find more of what they love with Google. Considering the search giant’s tremendous reach, local business promotion shouldn’t be a problem, nationwide or even worldwide. LivingSocial claims to make more than $1 million per day on average, while Groupon is on its way to the largest IPO valuation in history at possibly $15 billion. An online coupon company with the power of Google will be a cash monster.
Imitation is the sincerest form of flattery
Mashable reports that Google Offers will resemble the Groupon model at launch, and there’s nothing wrong with that, as the Groupon layout and interface has proven to be successful with consumers. However, powerful Google tools like Checkout, Analytics, ad networks and more should be more than enough to help Google Offers stand on its own. Then there’s that ubiquitous brand name. The name “Google” alone translates to power.
Google Offers on a pre-paid system
According to MSNBC, Google Offers will operate on a pre-paid system that will require no additional out-of-pocket expense for a small business to enjoy local promotion. After that, businesses only have to pay if a customer buys the online coupon offer, which is a handy tool for local business promotion. Mashable’s Ben Parr explains the Google Offers system this way:
“Google will pay out 80 percent of a business’ revenue share three days after its deal runs. Google will hold the remaining 20 percent for 60 days to cover refunds before sending the rest.”