Print 7 comment(s) - last by pixelslave.. on Sep 14 at 1:34 AM

Google Offers struggles to compete with Groupon and LivingSocial   (Source:
Google Offers, which is only three months old, is having a hard time breaking into the daily deals industry despite its recent efforts to expand its local bargains to more U.S. cities

Not too many companies seem to be having any luck in the daily deals business corner. While Groupon has been successful in its deals venture, it's currently under questioning by the U.S. Securities and Exchange Commission (SEC) after Groupon CEO Andrew Mason released an internal memo to employees last month that "lashed out" at critics and discussed August revenue growth. This move has put its initial public offering on hold for now, since regulations limit what a company can say before a planned IPO.

In addition, Facebook quit its Deals service after a short four months in the business.

Now, it looks as if Google is on its way to being in the same boat as Facebook. Google Offers, which is only three months old, is having a hard time breaking into the daily deals industry despite its recent efforts to expand its local bargains to more U.S. cities.

From July to August 2011, total revenue generated by Google Offers fell 23 percent despite an increase of 22 percent in the number of daily deals ran. Revenue per deal dropped 37 percent, partly due to a 46 percent drop in the number of vouchers sold per deal.

Google even had to increase the price of its vouchers by 18 percent, but it's still much lower than the price of Groupon and LivingSocial vouchers.

Groupon and LivingSocial remain the daily deals heavyweights. Groupon's revenue increased 13 percent in August from July, coming in at $120.7 million, and its market share increased to 53 percent from 51 percent in July.

LivingSocial slipped 3 percent to $45.1 million in August and had a market share decline to 20 percent from 22 percent in July, but still remains in the top daily deals ranks.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Google's attempts are just so lame
By vision33r on 9/13/2011 12:15:30 PM , Rating: 3
Not only are the offers lame, the style, and marketing tactics used by Google is just terrible.

No wonder Google suck at everything else except web.

Google Wave (fail) became Google+ which only got popular because of Fandroids and now it is failing too because catering a social network to geeks = FAIL.

Google Checkout is failing, Paypal is bad but Google did nothing to improve it to compete hard against Paypal. Another poor attempt probably by another lazy Ivy league manager at Google.

Google is another Microsoft today, started by geeks and now being runned by guys in whigs.

RE: Google's attempts are just so lame
By uhgotnegum on 9/13/2011 1:51:30 PM , Rating: 2
My "someone's confusing his(her) personal opinions with logical arguments" sense is tingling.

You may be exactly right, but perhaps you could provide an example other than Wave--after using both, I find very few similarities b/w Wave and Google+--as your argument why "Google sucks at everything except web."

I can't really speak to Offers, b/c it's not in my area yet. But, based on it's "terrible style," I certainly won't buy an incredible deal from them...

By uhgotnegum on 9/13/2011 2:10:31 PM , Rating: 2
***and my failure to properly grasp the difference b/w "its" and "it's" in the previous post isn't a good counterargument!

By gss4w on 9/13/2011 3:49:10 PM , Rating: 2
No wonder Google suck at everything else except web.

yeah Gmail, Maps, Android, Docs, Chrome, ... , they all suck right? Not everything they do is a success but it makes sense that they try multiple things even if they don't all work out.

By Flunk on 9/13/2011 11:51:18 AM , Rating: 2
While Groupon has been successful in its deals venture.

That's quite debatable, if you measure success based on profit this statement is untrue. Groupon has burned through tonnes of investment dollars and their coupon service is not profitable.

RE: Debatable
By MrTeal on 9/13/2011 12:03:29 PM , Rating: 2
That's just silly. You don't need revenue to be a billion dollar company on the interwebs, and you sure don't need "profit".

All you need is enough investment dollars to get a pool built in your theater room so you can float and drink Mai Tais while you watch the new Star Wars on Blu Ray, and dump and run before the company goes belly up.

It's the circle of internet commerce life.

By pixelslave on 9/14/2011 1:34:39 AM , Rating: 2
As a consumer, I love daily deals. But I am also a small retailer, and daily deals rarely help. I can see how it could help business that can naturally benefits from repeated customers. For example, most service based business (restaurant, spa, etc) could be benefited because once a customer comes to your place and you can get him/her to like your service, they will come back. But if you sell mass-produced merchandise (ie, most of the retail stores out there), most people only come to you for the price/convenience. It's much harder to turn someone who lives far away from you into a repeated customer unless you cut your price dramatically.

The daily deal sites are facing this dilemma: less merchants = less customers = slower growth.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Related Articles

Most Popular ArticlesTop 5 Smart Watches
July 21, 2016, 11:48 PM
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki