To compete with Groupon in online ad market for local businesses
Google is planning to launch a service that offers deals to local businesses.
Tentatively named Google Offers, the service is part of the search engine company’s efforts to expand its presence in the growing online-ad market for local businesses.
Google spokesman Nate Tyler said the company is soliciting small businesses to support and participate in a test of a prepaid offers/vouchers program.
Google Offers is believed to be an outcome of the company’s unsuccessful bid to buy the local deals startup website Groupon in December.
Subsequently, Groupon received nearly $1bn in private investment. It is also reportedly considering proposals from investment banks about a proposed initial public offering, sources said.
Google has several services for local businesses and has also built relationships with them by developing web pages, known as Place pages, on its search engine.
The search company has been selling ad offerings to the businesses that have contacted Google electronically to verify the accuracy of their Place page.
Leaked internal documents of Google documents showed how the company was pitching businesses on Google Offers. Google has confirmed those leaks as authentic.