Google Tries Its Hand at Coupon Clipping
Talk of a Google acquisition of Groupon has reached the boiling point. While neither company has officially commented, buyout rumors have been gaining momentum since November 19th. While still unconfirmed, the potential buyout is expected to reach into the $6 billion range.
You read that right: the deal originally reported to be hovering around $2.5 billion is now at an estimated $6 billion. If the deal is completed, Groupon will be Google’s largest acquisition yet. The price tag proves just how badly the search engine juggernaut wants to solidify its place in local commerce and advertising, and gain access to the enormous amount of data concerning consumer buying habits and merchant information Groupon has collected over the last two years.
Groupon is the Golden Egg
The company was founded in 2008, with revenues said to be around $50 million a month; backed by a round of fundraising earlier this year that brought the company’s valuation to $1 billion, Google’s pursuit of Groupon should come as no surprise. Coupled with the fact that Groupon would enhance Google’s pursuit of the coveted local search venue–the exact arena many of Google’s 2010 changes have been focused on–and the estimated price tag of $6 billion seems all the more relevant.
What is Groupon?
Groupon features a daily deal focused on local businesses in a variety of cities across the U. S. What separates Groupon from other websites touting local deals lies in the company’s reliance on collective-buying: to gain access to the deal of the day, a certain number of people must first agree to purchase the good or service before the coupon is released, hence the name Group-on.
Overall Effectiveness of Groupon
Continue to check in with the Rosemont Review for updates on the Groupon Google deal and its potential effects on search engine marketing for the aesthetic practice. We’ll also discuss the effectiveness of Groupon supported by a Rosemont Review case study, as well as ways to incorporate this latest innovation in local commerce into your practice.