Google Latitude Adds Checkin Offers Nationwide

Yesterday was a busy day for Google local. Google management changes in Local & the Hotpot rebranding made front page news around the web. An announcement that snuck through the cracks was the limited nationwide rollout of  check-in offers at “thousands of places across the U.S. using Latitude on the iPhone and Android”.

Offers (aka Coupons) and Latitude have both been step children in the pantheon of Google local products….huge but unrealized potential month in and month out over a fairly long time horizon. But they both seem to have found each of late and are the better for it.

Coupons, now called Offers, a nearly hidden feature in Places for what seems like eons, have often languished. They got their start in July of 2006 and received some push into 2007. For a while there was appreciable annual growth in the numbers of coupons in the system. But doubts about Google’s willingness to promote coupons surfaced early. By early 2009, amidst no promotion from Google and their failure to showcase coupons in any significant way, Google’s coupon inventory showed significant year over year declines. None but the most intrepid consumers could find them and even SMBs that availed themselves of the feature had trouble locating their own coupons.

After hitting their low point in early 2009, Google Coupons slowly started receiving limited attention from Google, at first cleaning out old and stale inventory and then  very sloooowly adding features and slightly increased visibilty. In November 2009  mobile compatibility and in June 2010 SMBs were given the ability to highlight them on their listing via Tags, potentially giving them front page exposure.

Shortly before loosing out in their effort to acquire Groupon in November of last year, Google rebranded Coupons as Offers. A superficial change but one that indicated that coupons were no longer on life support.

Google’s intended direction for the coupon aspect of Offers became clearer with a very public test in Austin concurrently with the South by Southwest Conference, integrating coupons with Latitude’s Check in process at 60 locations.  This newest expansion (details visible here) of offer checkins leverages some high value coupons at nationwide retailers and eateries:

  • American Eagle Outfitters: Up to 20% off your total purchase
  • Quiznos: Free sub when you buy a sub of equal or greater value
  • Arby’s: Free regular roast beef sandwich with purchase of a 22 oz. drink
  • RadioShack: Up to 20% off qualifying, in-store purchases
  • Finish Line: Save $10 on purchases over $50

In January of this year a spot check showed that the coupon volume hadn’t changed since 2009 with as few as 500 coupon offers in a city like NY. However, a check today shows that NYC now has 770 offers. Still anemic, still not visible to the general public but no longer on life support and growing once again.

Check in coupons are a natural fit with a check in product and offer obvious synergies that could move both Offers and Latitude forward in adoption and visibility.

When and how these Offers will be made available to other merchants is unclear. Is it a paid or free test? What is the tests duration and when will it be made available more widely? Will it be available and affordable to retailers large and small? All unknown at this point. (Although I did send those questions off to Google).

Google, not always able to capture the value in their technology due to execution and priorities, is nothing if not persistent. That should be obvious by their recent surge to a dominant player in reviews after many years in the shadows. Coupons via Offers and Latitude appears to be on a similar path.

Will the marriage of Latitude and Offers be successful? Would you use it in your or your client’s business if it were available?

Groupon Makes Sense to Google

David Mihm has an excellent piece (that I happen to agree with) on why Groupon in a broad sense is synergistic for Google. I think coupons and the new twist that Groupon brings to them will be a successful  and profitable advertising medium. John Battelle thinks it worth significantly more than $2.5 billion. Greg Sterling though argues that it isn’t worth $5 billion and that very well could be true. But Google may be the only company for which the purchase makes sense at these levels.

I would like to add the following thoughts to the discussion. Greg has estimated  to me that only 25% of all SMBs will ever be willing to participate in self serve internet advertising. The leaves the vast majority of local businesses not participating in and unaffected by most of what Google offers (Tags, Boost, Adwords) today.

I have estimated that Boost with a 10% adoption rate and an average $100/mo spend would generate $500 million a year in income. If it approached the 25% cap it would reach $1.2 billion with current adoption levels of 2 million claimed businesses. I have estimated that Tags, at a fixed spend of $25/mo and the same 10% has a much more limited short term potential of  $60 million. Even as claimed listings grow, there is a very real top side expectation for both products in a self serve world.

Enter Groupon. It is a product that is already generating $500,000,000 in annual income. If Google did nothing else but add the revenue stream to Tags and Boost when it rolls out nationally, they would be at a $1 billion dollar in local ad revenue.

But Groupon also has staff on the ground trained in selling new media. The portfolio for these sales people would immediately increase with a buyout. And an impressive portfolio it would be. These folks could lead with a Groupon deal and then lock in a monthly recurring revenue source with Boost or Adwords. If their selling efforts for Groupon were a bust initially, they could still start folks with Tags and demonstrate the significant benefits of local internet advertising and of claiming their listing in Places and move on to Boost and Groupon down the road.

This purchase would not just give Google a successful, easy to explain coupon product for SMBs (and national players to add to the Adwords revenue stream) but it would give them an on the ground sales force with an actual foot in the door of the other 75% of businesses that would never self serve. It is conceivable to me that just by adding these products to the portfolio and pitching them in person Tags and Boost sales would skyrocket immediately.

Google would have in place Free (Places, Offers), Good (Tags, Tagged Offers), Better (Boost, *?) and Best (Adwords, Groupon) product offerings in both a self serve and full service model that could scale from the single shop to the national retail chain, nationally and internationally. It would cover 100% of the opportunity, have huge upside potential and start out of the gate with a roughly $1 billion highly profitable, income stream and a defensible position …

Investors may not like the economics and analyzed singly Groupon might not in fact make sense. But if Google could use the purchase to jumpstart and grow Boost, Tags and Adwords for local in the rest of the world, the potential of Groupon to them at least, is big.

Here is a chart of Google’s free and paid products for Local that shows how Groupon would fit in the mix…

Type Location Ad Coupon
Free Places Offers
Good Tags Tagged Offers
Better Boost *?
Best Adwords Groupon

*? one possible area of Groupon expansion for google would be downstream to an automated group coupon product that would work in those areas that Google doesn’t have a sales force. This would play to Google’s automation strengths and further leverage Groupon across broader markets.

Google Places Odds and Ends

Google Places Help: Instructions Included for Multi-Language Listings

Google has long noted that having the same listing in multiple languages was acceptable. If you were not extremely careful merging of the multi lingual listings might occur unless they had been bulk uploaded. Google has now updated the Places Help Pages to include instructions (if not warnings) as how to proceed:

Multi-Language Listings

In bilingual countries, it is possible to add your listing in each language spoken in that respective country.

If content of each language is very similar in only one field, such as describing ‘Most Famous Restaurant’, it’s possible to add each translation in every field. For example, use the following most famous restaurant / restaurant le plus célèbre.

If the content needs to be translated in each field, business owners should create a listing for each language. To change the language in your Places account, use the dropdown menu in the upper righthand corner of the web page.

Google Places Showing Related Places Twice On Page

This started showing up yesterday in Places… a bug? a feature? a test? an indicator of things to come? Hard to tell with Places these days…

Google Coupons Offers Now Showing in Maps List View

Slowly but surely Google coupons Offers are working their way toward the surface of Google. As Greg Sterling points out, this is one market that Google had an early start in but never capitalized on. Offers are now starting to surface in Maps List View.

TechCrunch recently reported Coupons.com has reached the $ Billion dollar level in coupons printed. …. whether Google can play in the coupon area or needs to buy someone is unclear. What is clear is that Google obviously recognizes their importance to local marketing

Google Coupons Joining the Witness Protection Program as Google Offers

You won’t have Google Coupons to kick around anymore. It appears that they are joining the witness protection program under a new name: Google Offers.

Google Coupons Become Google Offers

Google Coupons had been the Rodney Dangerfield of Google local products, always hidden, never talked about and for years, after an optimistic start in 2006, they languished.

Until Google removed the ability to easily search for coupons, it was obvious from my annual coupon survey that their y/y usage was declining and by early 2009 Google coupons seemed to be on life support.

They were hidden not just from my research efforts but from the eyes of consumers as well. Here is what I told an SMB poster in the support forum that was searching for his own coupon:

Coupon location is one of the best kept secrets of Google Maps. Even Maps Guide Jen has been known to have trouble locating them. The only entity totally capable of finding them after they have been posted is the GoogleBot. Occassionally they are spotted by humans but only after they have drilled into Maps quite deeply.

Over the past 16 months, the traditionally moribund coupon program has started seeing a slow and erratic rebirth, apparently speeding up over the past few months.

During the spring of 2009, Google actively started cleaning out old coupons from listings and requiring an ending date be applied to all coupons. In August 2009, Google allowed businesses to link directly to their coupons. Last November, Google created an option to show coupons in the mobile environment.

With the introduction of the paid Tags product in June, 2010, a business was able to highlight their coupon in association with their listing.  In July of this year I was actually contacted by a Google Coupon Support person via robo mail to re-up an existing coupon and in September, it became apparent that Google was syndicating coupons from CitySearch. And somewhere in the very recent past Google added a Coupon Guideline Policy that actually requires that the coupon offer something of value in an appropriate way; noting that they could be pulled down particularly if customers complained about fulfillment issues..

Since the nationwide rollout of Tags in June, the ability to surface a coupon on the front page of the Google search results has finally become a (paid) reality, offering coupons their first, real visibility. Of late it has been a tactic that even I have been suggesting to some customers that were considering the use of Tags.

This rebranding, occurring after the extensive Places Search rollout, indicates to me that Google Coupons Offers have finally clawed their way up in the hierarchy of Google Local priorities, have survived their stint in Siberia and are being prepped for the Big Leagues. It is also an obvious “answer” to the recently introduced Facebook Deals.

Exactly what their roll will be remains to seen but starting a new life as Google Offers, it is not beyond reason to think that once Google has enough good inventory, coupons will surface even more widely on both the desktop and mobile.

P.S. I hope that you will forgive the many mixed metaphors and cliches but somehow an article about the ever abused Coupons seemed to warrant digging out every underdog reference from the past 50 years.