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January 24, 2011

"Google Offer" To Challenge Groupon

Mashable  unearthed documents today that show in detail how Google plans to take on Groupon on their own turf. In the spec sheet for the new program, Google says the product, called “Google Offers” is “a new product to help potential customers and clientele find great deals in their area through a daily email.”

 Google Offers is said to  be operating  much like  Groupon or LivingSocial: Users receive an e-mail with a local deal of the day, which they have a limited time to buy into. Once enough people commit to the offer, the deal is confirmed or ‘on’ and those who have committed receive their coupon. Powered by Google Checkouts, Google Offers will also have sharing options to allow people to spread the word via email, Google Reader, Google Buzz, and the usual social network-y suspects. 

After having been spurned by Groupon to buy it out, it seems Google has decided that the best way would be to " start something from the scratch and then let the " Google " Marketing Machinery  Distribution channels ( Gmail/Orkut/Youtube/Blogger / Google Reader ) take over. Internal Reports suggests that Groupon did not wanted to "give away a ready made product that has immense potential to monetize " and Groupon raised $1 billion on its own -- and is reportedly preparing for an IPO that would value the company at $15 billion

According to the New York Post Google has been looking for a path into the surging daily deal marketplace. It recently offered to buy Groupon for $6 billion for instant access to the space( (Google is supposed to have offered Groupon  $2.5 billion to between $5.6 and $6 billion to acquire them).)
 Customers will pay for the offers using Google Checkout and the program will feature social share options including Google Buzz, Twitter and Facebook.A daily service agreement would help Google to make inroads in the local advertising market that is estimated at 91 billion dollars, analysts said.

Just like competitors Groupon and LivingSocial, Google Offers gives customers a certain time limit for obtaining special offers from company’s in their area and through national deals. The offers,  would be  triggered when a certain number of customers agree to the deal.LivingSocial offered an coupon attracting more than 1 million subscribers, the largest such offer in the sector's short history

An internal Google memo outlining the new service was obtained by the tech blog Mashable on Thursday. "Google Offers is a new product to help potential customers and clientele find great deals in their area through a daily e-mail,"