October 27, 2011, 2:13 PM

Google takes a harder swing at Groupon and LivingSocial

Google Offers will now aggregate deals from 14 other discount providers.

Lead Photo

Google Inc. is making a stronger bid to become consumers’ primary source for daily deals. The search engine said today it would aggregate online discounts from 14 providers within Google Offers, and also enable consumers to personalize the offerings they receive from Google.

The moves come less than three months after Google bought local and daily deal aggregator The Dealmap, which collects online discounts from some 450 sites.  Google made the acquisition after the launch earlier in 2011 of Google Offers, the search engine’s daily deal service.

Now, Google Offers will include discounts and deals from the following providers: Dealfind, DoodleDeals, Gilt City, GolfNow, HomeRun, Juice in the City, KGBdeals, Mamapedia, Plum District, PopSugar Shop, ReachDeals, Active.com Schwaggle, Tippr and Zozi. Gilt City, which sells tickets and services for specific cities, is part of Gilt Groupe Inc., No. 49 in the Internet Retailer Top 500 Guide.

Google says it will initially offer the expanded deals to consumers in San Francisco before rolling them out to shoppers in other cities. Google Offers serves consumers in about 30 U.S. markets.

The deal with Google Offers could result in consumers seeing several dozen deals each week from KGB, Patrick Albus, the discount provider’s CEO, tells Internet Retailer. In a typical week, he says, KGB sells 200 deals to consumers in the United States.

“We look forward in having a relationship that is long lasting,” Albus says, which helps to explain his refusal to even hint at the revenue Google will take as a result of getting KGB deals before a wider audience.

Neither Google nor some of the other deal providers provided immediate comment. As for branding, a discounted lunch deal presented via Google Offers today, but from Gilt City, carried the Gilt City logo below the box that includes the redemption deadline and next to the box that enables consumers to share the discount on social networks. Other deals also carried logos from the other providers.

Google also said today it would enable consumers to better personalize the promotions they receive via Google Offers, through what the search engine calls a “personalization quiz.” Consumers on Google Offers can mark various boxes—for instance, Arts & culture, or Food & drink—to opt out of receiving discounts for those areas.

Google’s expanded discount offerings helps it make up ground in the daily deal space, says Greg Sterling, founder of Sterling Market Intelligence.

“Google came late to the daily deals party but now is quickly emerging as one of the top companies in the segment. Facebook stepped away from the role of deals aggregator and Google has now embraced it,” he says. “The additional deals content will help differentiate Google from Groupon, LivingSocial and others and establish Google as one of the three or four deal sites that consumers subscribe to. It will also be content that Google can distribute in several ways beyond e-mail, including in mobile.”

comments powered by Disqus




From The IR Blog


Anna Johansson / E-Commerce

Why is social proof big for niche brands?

A small online retailer that lacks brand recognition can get a big boost from high ...


Donn Davis / E-Commerce

Technology takeover: The fashion industry is next

We are now entering the third decade of the Amazon effect, and it is just ...

Research Guides