Let the Coupon/Groupon wars begin. Again.
April 24, 2011 § Leave a comment
Google launched it’s ‘Offers’ deal a day service in a few cities on Thursday. It’s basically another daily coupon service. Google is better funded than the 200 odd deal a day platforms out there so money won’t be a problem. But how will Google Offers compete in this crowded market?
1. Adwords powers deal-a-day ads online: One huge consideration is that Google Ads (through Adwords and it’s affiliates) is the engine for most of the deal-a-day adverts online: take note as you browse your favorite web pages today. Who can target ads better than Google can? No one. Will Google leverage this power to compete? You bet. The key will be to do it without breaking competition laws.
2. 3000 sales employees? How about 5 exabytes of data: The claim is that Groupon (the daddy of deal a day sites) has over 3000 sales employees. That’s a lot of phonecalls to small businesses. Google lacks the human element that Groupon (and the other deal a day sites) brings to small business customer acquisition. But what Google lacks in human interface, it has in data quantity. And this data is on both the small businesses and their customers. Google has the analytical capabilities to find relevance/correlation in the huge repository of data it currently has. This will help them generate win-win-win deal opportunities that keep more money in the hands of the small business owners (a current criticism of Groupon).
3. Where are the customers? It is claimed that there are over 100 million Gmail accounts. Add to that all the email addresses that have received an email from gmail addresses. Since Google is replicating the email-a-day formula of other deal-a-day sites then you have close to 200 million accounts that can get deals from Google. Targeted emails too…
4. A lot of Cash: Google has a lot of cash to spend. And Google will spend.
Will this equate to success for Google Offers? Time will tell. One thing we can be sure of is that competition will increase in this market, this will bring innovation and innovation will benefit customers (customers and businesses). And that’s a good deal for everyone…
- Google Offers Launches, Promises 50% And More In Savings (blogherald.com)
- Google’s Daily Deal Groupon-Clone Now Live (wired.com)
- Google’s Groupon Competitor Goes Live (mashable.com)
- No Coupons Here, Just Cash: Groupon Files For Another $6 Million (techcrunch.com)