Internet giant Google is said to be planning an entrance into the group-buying craze, after a leaked flyer promoting its Google Offers program was published across the internet late last week.
The rumoured program may be a response to failed negotiations that took place last year with industry giant Groupon, with Google apparently offering the company $US6 billion to acquire the company.
But some in the industry have raised questions about how the internet giant will manage such a scheme. Colin Fabig, chief executive of local group buying operate Jump On It, says it will be interesting to see Google’s approach to the sector.
“Google’s thing is automation. They are notoriously bad with customer service, because their business is all about automation…doing things for yourself and so on. And now, this type of business is all about relationships, getting the right deal. It’s going to be interesting to see.
“The other point I’d make is that Google is not really a destination. People don’t rush on to these sites, they get a Facebook post and then go off and do it. If they construct an email database, how is that going to work? There are a lot of questions there.”
The flyer, which was originally published by Mashable, describes a type of program that would allow small businesses to introduce their own deals and have a team of writers at Google help promote it.
In a statement provided to Search Engine Land, Google has confirmed it is working on a type of vouchers-based program but would not provide any further details.
“Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program.”
“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.”
Google Australia was contacted for comment but no reply was received before publication.
The type of model being described sounds similar to those introduced by both Groupon and Facebook, which have allowed individual business to create a type of portal, and then offer whatever deals they want as often as they like.
But the Google flyer is short on details.
“Google Offers is a new product to help potential customers and clientele find great deals in their area through a daily email,” the flyer states.
“For businesses, it’s a smart and easy way to find new, high-value customers and bring them right to you.”
Google Offers will be prepaid, the flyer states, meaning businesses won’t be charged out-of-pocket expenses and they will be given analytics tools to measure their return on investment.
Businesses create their own deal, and then submit it to a writing team at Google that will “craft a compelling write-up for your offer, approved by you”. They will also add an image and then determine when the deal should be run.
When the deal actually runs, it will be promoted across Google’s advertising networks and then shown on the actual Google Offers site. Google will take its fee from revenue directly, meaning the company offering a deal will have cash “in your pocket” three days after the deal runs.
Google Offers will also allow users to redeem their bargains through barcodes shown on mobiles, along with the usual printed copies.
There are no further details about when Google Offers may actually launch, or whether it will even be launched at all. But such a program would deliver a significant blow to the local group buying sector.
The group-buying industry relies on localised deals. With Google’s location-based infrastructure already in place through Google Maps and other types of searching technologies, integrating Google Offers with existing Maps and features will provide businesses with exposure to millions – something other group-buying sites lack.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
