Google has needed a better way to zero in on local search, local consumers, and local resources for several years now. But who would have thought it would be found in an email list of coupon loving customers? Enter Groupon. The less-than-two-year-old start up that uses local search and email to quickly offer over 25 million members in 30 countries convenient, local solutions to their needs and wants.
You know, Groupon, the Chicago based company that went from zero to 1/2 billion in revenue within two years? Groupon, the company Google won't confirm, but is most likely buying for a mere 2.5 billion dollars? Oh them. The email coupon company.
Email coupon company or not, Groupon has made a a loud boom in the world of online marketing. Loud enough for the likes of Google to pay attention to with their big fat wallet. Especially because small and medium businesses are expected to spend 10% less on Google's c
ore paid search in the next five years, according to Borrell Associates. In fact, email marketing is projected to double by 2015 while paid local-search spending is expected to plummet. Last month, Google even moved star exec Marissa Mayer to the helm of local services from search products. For those of us who understand the inner workings of Google, that's a major event.
“Google has known for years that local is the major untapped area for online advertising,” said David Hallerman, eMarketer principal analyst. Today's online consumers are searching for their local online nesting areas, e-communities and virtual neighborhood hangouts. And, no surprise, Google wants to offer the small town solution in cyber space that can bring them additional local revenue.
But don't forget, the online world of marketing success is all about data. Data beyond email addresses. Data that says “Sue likes this, and hates that. Sue shops in the mornings and loves dogs, and buys coupons for Thai Bistros, and supports local non-profits for blind children.” For Google to have Groupon as part of the company would mean having ten times more local data like this at their fingertips. And he who has more of this data wins. So 2.5 billion dollars may be a bargain. Unreal, huh?
