Home  › Social › Social Commerce

Google Could Mobilize Groupon In Saturated 'Deals' Market

  |  November 30, 2010   |  Comments

Google would bring huge reach to Groupon's deals platform, but the online daily deals bubble could eventually burst.

Google appears set to stake a bigger foothold in the local digital marketing space by acquiring the two-year-old Groupon's unusually fresh list of 15 million e-mail addresses, segmented by city and purchase behavior. Google plans on buying the daily deals platform for anywhere between $5.3 billion and $6 billion as early as this week, according to AllThingsD and The New York Times.

Groupon is rumored to be pulling revenues of $50 million a month. While some industry pundits have characterized Google's reported move as a coup, important questions abound. And here's a big one: Is the online daily deals bubble on the verge of bursting?

The niche Groupon pioneered seems on the brink of consumer marketplace saturation with an onslaught of new competition. While LivingSocial is the second biggest player, Dealster, Woot, DealPop, Kgb Deals, SocialBuy, Tippr, Bloomspot, and Townhog are other names that have popped up. In addition, many newspapers are offering daily deals of their own via house ads on their website and/or through their e-mail list.

So while the daily deals niche has been increasing dramatically - the lion's share of Groupon users have been picked up during 2010 alone - how much more it can grow certainly remains to be seen.

At the same time, Google would seem to give Chicago-based Groupon new avenues of distribution that could help it stifle the competition and lead the niche into a likely more mobile-centric era. Google's text and map search results would seem a good fit to push Groupon's locale-based daily deals via both Google.com and Google Mobile.

As an example, a Groupon icon could appear on Google Mobile maps for a restaurant deal after viewers conduct a search query in that Zip code or neighborhood. The mobile users could then click-through, purchase the deal, and walk into the eating establishment. The Mountain View, CA-based Google's local marketing prowess could be substantially bolstered by leveraging Groupon not only via those platforms but also via Android apps.

Meanwhile, Google purchasing Groupon would possibly lead to another big question: Which major company would then buy LivingSocial?

 

ClickZ Live San Francisco Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Resources

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...