There had been news about Google offering Groupon between 5 to 6 million dollars for its acquisition. This news is actually true however, Groupon declined the offer. But whether Groupon declined or accepted it, one thing is for sure, Google is once again planning to revolutionize web advertising and social behavior.

Probable Reasons of Planned Acquisition

  • One reason why Google wanted to acquire Groupon is because of social advertising. Groupon in itself is already a great investment and being able to acquire it will mean bigger paychecks in the future.
  • Google wants to use the Groupon software in order to penetrate the regional and local market. If it were the case, an entrepreneur advertising postcard printing services will be able to achieve 100% potential audience who are interested in that kind of merchandise.
  • Groupon would have definitely help Google to accurately pinpoint user profiles through its system. If the merger would happen, Groupon will be able to tell what the person bought in the local store before; therefore Google will be able to suggest items that the person may want.

How is this important to local and small businesses?

If this is the direction that advertising and local marketing is heading, then small businesses need to join the bandwagon.

Once consumers look for products or services on Google like holiday greeting cards, the search engine will be able to search for the product in the client’s locale and the customer will be able to go to the store and finish business.

In one way, this system actually drives people from an online to an offline transaction.  Because of this purchase, the Groupon software will be able to store this data to the user’s profile so that Google can advertise to that specific person future items that he or she may like. This is where 100% advertising comes in.

A simple ad in any website may give a seller 20-30% of the readers as customers. That is why local business owners need to sign up and get listed in Google Merchants and other place-oriented websites like Foursquare and Facebook Places. Having a profile in Groupon and Living Social will also be very beneficial.