The Daily Deals marketing model may not be so bad after all. Google has officially given it a vote of confidence with the acquisition of daily deals aggregator site, Dealmap.
The acquisition was made public, however, the terms of the deal was not disclosed—no surprise there. Analysts are mum on just what this means for the sector as a whole, but the initial sentiment is that Google’s acquisition of Dealmap is a signal that there could be life left in daily deals. Although Dealmap is an aggregator, its acquisition is strong evidence that the dispensers of daily deals (Groupon et al) will have some relevance, at least for the foreseeable future.
On the other hand, the acquisition of Dealmap could very well be proof of Google’s insatiable appetite for ‘buying stuff’. Google, after all, doesn’t always make the smartest of choices, and even multi-billion dollar companies make mistakes.
The good news though, is that Dealmap wouldn’t be too big of a mistake. The daily deals aggregator was only formed in 2010 and to date, has just 2 million users. With such small numbers and young credentials, I doubt whether Google paid very much for the company. Indeed, Dealmap could very well be what Google needs to boost its own daily deals offering called ‘Google Offers’.
It’s very hard to tell what’s going to happen in the daily deals industry. Even with Google becoming a player, the model could still go under. The key to its survival will ultimately lie in the hands of the businesses that provide the offers. If Google, using Google Offers and Dealmap, can drive profits to these businesses, the industry could very well survive. It remains to be seen, and ultimately, only time will determine that.
Watch the video below to learn more about Google’s own daily deals for businesses.
www.youtube.com/watch?v=dQFDRaKvcvQ
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