Google is a powerful company. It’s so big, in fact, that industry analysts are already talking about how the company needs to be prevented from growing even further, lest it become a monopoly by virtue of its buying power alone. However, despite the complaints on Google acquisitions in the last few months, Groupon — one of the companies that Google attempted to buy — made one thing clear: Google’s offers can still be refused.
They turned down a half-billion dollar deal, instead deciding to maintain their own independent service. After all, the daily deal company remains dominant in its field. But how, exactly, will Google be moving forward from here? An interview with Google’s own Marissa Mayer gives us some details.
There’s one key thing to keep in mind here: Google relies on ads to support its business. To get those advertisements in the local space, Google must appeal to local businesses, and no one knows how to do that quite so well as Groupon. Certainly, Groupon’s connections are much of what Google was looking to integrate with the acquisition.
Now that it’s failed, however, the question being raised is whether or not Google will make its own service to rival Groupon. In her interview with Media Beat, Mayer stated, “We already have some things that are like [Groupon]. We have things like coupons, and offer extension ads that allow merchants to basically make offers to our users.” The goal of Google isn’t to fight against Groupon, but to determine how they can make greater use of their existing services and technologies in the local arena.
Mayer, once a prominent engineer on Google’s core search technology, was recently moved to the position of VP of Geographic and Local Services. This puts her in charge of more than a few of Google’s products, including Maps, Maps for Mobile, Google Earth, Hotpot, and something new called “contextual discovery.”