Photo: Dan Frommer, Business Insider
Why is Google thinking about paying over $4 billion for Groupon?Chris Muhr, the manager of Groupon’s UK business, MyCityDeal, tells the Telegraph, “we have something that Google does not have and no one else has and that we have really tapped a new market.”
That “something” is strong, direct relationships with small businesses. Google has Adwords, which is sort of abstract. Yes, it’s an ad, but it just sits there. Groupon, on the other hand is a call to action through discounts, bringing in customers.
Add Groupon into Google search results and you have something pretty compelling.
Here’s his full explanation:
“I think the main reason is that we have something that Google does not have and no one else has and that we have really tapped a new market,” he said. “It seems to me if you tap a new market the opportunities seem to be endless.”
“Think about Google Adwords … if they had local business for example. Type in a keyword in Google, say ‘bar’. You find a bar in your area. Google then puts up this kind of bubble box that says this is the business and here is the address.
“But that is it. It does not have direct contact with the business. The business does not come back and say I want to attract customers via that search. Most of the time the customer does not convert from there into an actual customer.”
A business, or those competing with it locally, could run voucher offers against such searches, Mr Muhr suggested.