I'm a big fan of Groupon! It's fun, cheap and easy way to market locally. If you haven't heard of it yet, check it out! Groupon started in 2008 as a way to make it easier for people to enjoy the great things in their community. There is a Groupon for most cities, and they are growing everyday.
Groupon features one daily offer in your community at an unbeatable price. It is featured on the site as "Today's Deal." If enough people join in on that deal, then it activates the deal. There is a minimum number of people required to join to activate the deal, so people are encouraged to tell their friends on Social Media like Twitter, Facebook, etc. Once enough people join, then you are charged for the Groupon and it is emailed to you! Don't worry, you are not charged until the Groupon is activated. They call their strategy, collective buying power.
Groupon is not just great for consumers. It has the incredible ability to drive hundreds, sometimes thousands, of customers to local businesses. Groupon.com says that 95 percent of their surveyed business partners want to be featured on Groupon again. It has been featured on ABC, CBS, NBS, to name a few. Businesses across the country have seen record breaking increases in customers. They are also reaching people they wouldn't normally reach. Sound good?
I read in the news last week that Google was offering buy Groupon for a report $5 billion! That would be Google's largest (most expensive) acquisition to date! However, apparently the deal is off, for now. Groupon.com is a relatively new (2 years old) website that offers people daily local deals.
I can't believe Groupon walked away from a $5 billion deal, but who knows what they have up their sleeves. Google was pursuing Groupon in an attempt to turn the Internet's largest advertising network into an even more powerful marketing vehicle. The $5 billion price tag is way beyond their largest purchase of DoubleClick Inc. in 2008 for $3.2 billion.
My concern is that Groupon may have made a mistake not taking the money now. There are many imitators out there, though not as successful, but the concept is easily replicated. Hopefully, this turns out well for Groupon, I think they have a great product and I use it often. What do you think?
Follow Michael Tasner on Twitter: www.twitter.com/michaeltasner