Mountain View, California — Not long ago, Groupon gained some notoriety for rebuffing a US$6-billion takeover offer from the web search titan Google. The world’s largest search engine behemoth has confirmed that it is devising an online shopping bargain service that would challenge Groupon Inc. in the increasingly lucrative online deals space. Promotional materials leaked by Mashable and confirmed authentic by SearchEngineLand say Google Inc. is about to launch a new product called “Google Offers”.
Having been rebuffed in its nearly $6 billion offer to buy Groupon, and (shortly thereafter announcing plans to go public at more than twice that valuation), Google has decided to launch Google Offers, the search engine giant’s Groupon competitor, according toMashable’s Jolie O’Dell who has unearthed the story. One of our sources has sent us a confidential fact sheet straight from the Googleplex about the company’s new group buying service. “Google Offers is a new product to help potential customers and clientele find great deals in their area through a daily email,” the fact sheet says.
Apparently the Mountain View, California-based company was not kidding around. A message to merchants posted on Google said the service “makes it easy for you to attract new customers and bring back old ones by enabling you to instantly post discounts and other types of special offers across Google properties.”
“Google is communicating with small businesses to enlist their support and participation in a test of a prepaid offers/vouchers program,” Google spokesperson Nate Tyler, said in a statement.
“This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.”
Groupon employees work at the company’s Chicago offices. It recently turned down a reported $6 billion offer from Google. Photo: Tim Boyle / Bloomberg
Google Offers looks and functions in a style similar to Groupon or LivingSocial, which emails members daily deals from local businesses. They then have the privilege to buy that deal within a limited time limit (we assume 24 hours). Once enough people have made the purchase, the Google Offer is triggered and users get that all-too-familiar $10 for $20 deal for that Indian restaurant they have never tried.
However, from what is apparent, Google Offers will be powered by Google Checkout. It also incorporates Facebook, Twitter, Google Reader, Google Buzz and e-mail sharing options. Google is actively reaching out to businesses now to get them on board with Offers. It even apparently has a writing team in place to craft the write-up for offers.
In November, Facebook initiated Deals, which allows merchants to make a variety of special offers to nearby customers. This week, deals site LivingSocial attracted widespread attention for selling a $20 Amazon gift card for $10, purchased by 1.3 million people.
Nevertheless, the world’s most visited search engine, Google brings significant advantages to the fight, analysts said.
“Groupon created the daily deals market, but if Google gets into the act, it is going to be ‘Clash of the Titans’,” said Susan Etlinger, a consultant at the Altimeter Group in San Mateo.
Etlinger said Google’s enhanced ability to customize ads to customers, both on the Web and through mobile devices, would be significant advantages in the market.
Truly, the search engine giant clearly is not giving this market up without a fight, though. With its vast reach, huge resources and brand recognition, it could prove to be a powerful player in the space. We are going to be watching these developments closely. For now, below we have embedded the entire fact sheet Google is sending to local businesses: