Local business advertising and consumer coupon business Groupon is a increasing star within the online retail community. The business has done so well that in November Google wanted to buy Groupon for nearly $ 6 billion. In accordance with the NY Times, Groupon didn’t think Google’s offer was enough. By the spring, Groupon plans to proceed with an IPO that might value the business at a record $ 15 billion. I wonder if Google would take out a personal loan to pay Groupon that much or not.
How Groupon is doing locally
Within the last two years, there has been a ton of expansion in what was began in Chicago, local business marketer Groupon. The business has 2,500 staffers across the globe and pulls in half a billion dollars in revenue each year. Anybody can subscribe while the business offers one discounted deal each day. Usually, small and medium local businesses use Groupon to bring customers in with their deals.
The subscribers are tracked depending on their buying habits and demographics. Groupon makes up deals that can be what customers actually want.
Difficulties Google is having with search
When it comes to web search, Google is at the top. Still, small and medium local businesses aren't targeted by the business very well. Google's paid local search will drop in the next five years. It could possibly be 20 percent that drops. Numerous small businesses will use sponsored search results and Google advertising for a little while. They’ll drop them right after that though. Only 18 percent of Google's ad revenue comes from local businesses. Local businesses are targeted by Facebook with Facebook Places. This can be a way that Facebook is trying to compete with Google. Google is also facing anti-trust investigations in Europe over how search engine results are ranked, which could seriously affect search revenue, if the company is found at fault.
The Groupon/Google deal
Both Google and Groupon would benefit from the $5.3 billion offer from Google.
There would be a huge return from the investment for Groupon which is really great as it is new. There would be a lot Google would be getting as well. This would be e-mails from consumers, spending habits, pricing details and every little thing in between. The information is something Google could use in order to increase. The company would have more than search and paid search revenue coming in. This isn't new at all. In 2009, Google did the same thing trying to purchase Yelp. The Google-Groupon buyout happening would be really great. It would mean that there would be an international-sized change in local buying opportunities for a ton of people.
Information from
New York Times
dealbook.nytimes.com/2011/01/13/groupon-readies-for-an-i-p-o/?partner=rss&emc=rss
Read Write Web
readwriteweb.com/archives/why_did_groupon_diss_google_15_billion_ipo.php
Groupon mobile app review
youtube.com/watch?v=5GDwsEq2snY
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