Google had planned a long route for Google Offers, which looked like going from strength to strength when it first moved to San Francisco and New York and then extended its reach to five more cities. But now it seems to be that the leader, Groupon has not at all been affected by Google Offers’ extended reach. Moreover, Google’s attempt to enter the daily deals scene with Google Offers seems to be more like a flop as there is already a decline in the revenues for the search engine giant in this industry. However, the trending North America daily deal industry has risen up by 9 percent.
According to Yipit data obtained by Reuters in August, the revenue decline was by 23 percent for Offers, even after it moved to many new regions and many business owners had only appreciation for Google Offers. One of the major reasons was lack of interest which forced the purchase voucher count to drop down by 46%.
it is quite strange that there is a drop in its revenue and voucher purchase count, still the vouchers are being offered at a rate which is way much lower selling price as compared to that of its competitors such as Groupon and Living Social. There is however an increase as compared to the earlier voucher cost and the average voucher cost now from Google has increased by 18 percent. So, the bottom line here is that still its a win-win thing for the buyers, who continue to show their disliking for Offers.
This troubled scene makes one wonder that has actually Google got into the daily deals scene or not. Agreed that it is too early to actually answer that, but the slow launch isn’t really moving the guided way for Google. Google has attempted to eat a share of an industry which is potentially in demand, but Google looks to be left out as an option by the buyers. This might make one even think that the low revenues are a reason preventing Google to come up with a fresh website for Google Offers and not just promote it on Google homepage.
In case of Groupon, it has in fact become way more fearsome in its role as an opponent. That is as usual an addition to the troubled package Google Offers is facing. Groupon in August had an increase in revenue by almost 13 percent, which had strengthened its market share, moving it up to 53 percent. It accounted for an overall rise in market share by 2 percent.
Groupon is more kind off enjoying a monopoly as many competitors of Groupon have withdrawn this competitor status. One such example is that of Facebook. The social networking giant had plans made to come up with their own daily deals attempt, but it could not work out that well, resulting in its close down even before it could hatch out of the egg. Another example is of Yelp, who had even cut down dramatically. It would e interesting to see as to how Google deals with its Offers sighting a competitor who has down nothing wrong with its strategies to stand firm in the industry.
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