Media

Why Groupon Should Skip the IPO and Go Google

November 2, 2011  •  2 min read  •  By Mark Hughes

Don’t do it, Groupon. It’s not that you couldn’t do it. You could go public if you want to. It’s just that you’re worth more by not going IPO.

I have an alternative: Get back together with Google and marry your undeniable success in daily deals with Google’s ambitions to power a huge chunk of mobile commerce, which is only getting started .
Why does it make sense? First, it solves a big challenge for Groupon (valuation). Second, I won’t say Google has any big problems, but it does need a little help getting one of its key growth initiatives off the ground. And that’s Google Wallet. Normally Google sends out an internal email to engineering to make things happen. But let’s not anoint it as Teflon-coated. Three words: Nexus, Google Buzz.
Google’s vp of marketing, Gary Briggs, is amazing. But one thing I know for sure, and I’ll bet he does, too: Getting people to adopt Google Wallet is going to be a massive challenge. Let’s go back and discover how AT&T wasted $120 million with its “mlife” ad campaign trying to get Americans to text message.
Although Europe and Asia were text messaging like crazy, in 2002 Americans couldn’t care less. AT&T scrapped the $120 million “mlife” campaign and went to the Super Bowl. That didn’t work either. In the end, what got America texting wasn’t any marketing campaign but, instead, “American Idol.” Once “American Idol” allowed people to vote by text on American Idol, the entire text volume for all carriers rose threefold and gave Americans a reason to text.
Google Wallet (just like text messaging) is perhaps the coolest thing to happen to the phone. But adoption will only happen when Google answers the consumer’s question: “What’s in it for me?” Give me a reason to use it.
Enter Groupon. Print a coupon, get a discount, pretty ho hum. But now, use Google Wallet with your Groupon, and get double the savings on your first five Wallet transactions? Now you’ve got a reason to use Google Wallet.
Google Wallet could be the most important change to commerce in the decade — but only if people adopt it. Groupon gives people a reason to adopt.
Andrew Mason, it’s time to get Google on the phone and say you’re sorry. You two can do great things together.
Mark Hughes is CEO of C3 Metrics, a digital advertising attribution company.
https://staging.digiday.com/?p=1860
Most Read
Trending in
Digiday Top Stories
  • Media
    Media Briefing: Why publishers hope chatbots will be the latest retention tool

    This week’s Media Briefing looks into why publishers are building their own artificial intelligence-powered chatbots. Publishers hope chatbots will be the latest retention tool As part of publishers’ integration of generative AI technology into their editorial and business operations, publishers are developing and launching chatbots on their websites. The four publishing executives Digiday interviewed for […]

  • Media
    Test Test

    However, Fitzco’s research “has consistently shown that environmental issues and sustainability are important topics to younger skewing audiences. The focus on social, along with visual representation of data, aligns with the type of content a younger audience consumes,” she said. Joyce, on the other hand, said interest in sustainability content from advertisers and consumers “has […]

  • Media
    This is a Digioh Test

    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam ac venenatis nisi. Aenean condimentum consequat neque, a semper eros fringilla vel. Sed urna diam, faucibus sed enim ac, dapibus condimentum odio. Duis a mi lobortis, interdum quam at, rutrum erat. Integer non mi vitae sem auctor ornare. Suspendisse faucibus cursus ultrices. Vivamus malesuada tristique purus, […]

  • Modern Newsroom
    The Washington Post invests in climate coverage as its team expands to over 30 journalists

    The Post's climate team continues to expand as the publisher makes big bets on the beat drawing younger audiences.

  • Content & Commerce
    Inside one media company’s strategy to monetize the Fifa World Cup

    Soccer media business Footballco has spent most of 2022 trying to make hay while the sun is shining.