Friday, May 4, 2012

theories on Google Offers lead (as of May 2, 2012)

It appears most of the local deals offers are coming from Google lately. Groupon appears second, while LivingSocial is either a distinct 3rd or non-existent.

1) Google is undercutting Groupon's charges on small merchants. Goog has deep pockets.

2) Google sees Offers in bringing more traffic to Goog in general. Ads make more $. Goog has side products [search, maps, youtube, gmail]. Groupon does *not.

3) Amzn is *not encouraging LS bc there's not as much synergy on that 2 businesses: if customers spend $ on local deals, less on amzn. [for Goog, local deals may take away current $ from wallet, but ads may benefit later phase and it's just ideas - advertisers must ascertain that Offers takes away spending power with the increased traffic]

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