Apparently, Google’s offer to acquire Groupon was turned down, but that doesn’t mean the search engine company will stop dreaming about dominating the local advertising world. According to Mashable, Google is cooking another service called “Google Offers,†which most likely identical to Groupon’s business. With the word “Offers,†the new Google product will offer restaurant (and even electronic) deals with savings of up to 50%. Users can buy coupons via Google Checkout, and might include other paying options in the near future. Mashable also added that the new Google product is now on its testing stage, and the company is busy “communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program.†Can Google Offers beat Groupon? Actually, the answer is yes, but that will depend on the number of deals available, and how the company will reach the consumers. Google Offers is most likely scheduled to hit United States first, followed by other parts of the world. Compared to Groupon, Google can use the power of their popular search engine, and even Google AdWords/Adsense to reach potential customers. Groupon is also using the power of advertising to reach more customers. According to an article posted by Business Insider last year, Groupon spent a “ton in Google Adsense,†and the reason is the capability of Google Adsense’s to deliver geo-targeted advertisements, or ads that are based on location of the internet user. Apparently, Google Adsense ad placements are controlled by bidding, so if Google Offers will compete hard with Groupon in the Adsense world, it’s highly possible that Groupon will lose a lot of page views.
competition is good. just imagine if google competes with groupon's advertising budget, adsense publishers win in the long run. let the competition begin!