Yahoo wants to buy Groupon, we heard last week. Of course it does!
Groupon is an already-huge and very-fast growing local advertising business.
- eBay’s growth is starting to slow. It’s core business is essentially advertising for small, local businesses and Groupon presents a real threat. Instead of spending thousands of dollars on Google ads to drive potential customers to eBay auctions, local ad buyers can, through Groupon, just plow that money into discounts for new customers.
- Google can’t crack local because, unlike Groupon coupons, search ads require local business to own and operate a Web page. If Google were to buy Groupon it could work to upsell some of Groupons thousands of local advertisers into search advertising.
- Yahoo’s most valuable assets is its HUGE lead in email. Unfortunately for Big Purple, the the once-fast growing business it has developed with that traffic – brand advertising – is starting to slow. Why not direct those eyeballs toward Groupon coupons from local businesses?
- Amazon is the king of ecommerce personalisation. Groupon, which blasts out just one non-personalised deal to everyone in each locality, would become a much more valuable asset with Amazon’s technology telling it which deals would be better to send to different demographics. That’s value creation – the best and only reason anyone should ever make an acquisition.