Groupon VS. Google

 

Many of you may have heard that Groupon and Google were negotiating for a few weeks but at the end the deal fell through.  Groupon refused the $6 Billion offer from Google.  Just to give you an idea of how much this would have helped, Groupon cofounders Brad Keywell and Eric Lekofsky may have earned $600 million and $1.8 billion, respectively.  So why did Groupon say no?, this would have guaranteed millions of dollars in personal wealth.  One source says the view on Groupon's board was that a Google-Groupon merger would draw more regulatory scrutiny than any other deal Google has ever done.  Because of the anti-trust investigations Google is going through, the Googled-Groupon may not be allowed to go through and at the end it would take months for them to get the bad news.

According to sources, they verified that Groupon's annual revenues are now at a $2 billion run rate, which is much higher.  The $2B figure is the total value of Groupon sold.  This means that as of right not they are looking for a bigger pay day that what Google offered originally.

At the same time, Google has been criticized lately for growing too big to innovate, and ironically, this may be a problem that could plague Groupon itself if it opts to sell.

What do you think?  Would it make sense for these two companies to join forces?


http://techcrunch.com/2010/12/03/confirmed-the-groupongoogle-deal-is-off/
http://news.cnet.com/8301-13577_3-20023978-36.html

Update: Google and mobile payments

It seems that all major companies are going viral, they are trying to find the best and fastest way to make their products more user friendly.  Google is already present in the shopping online world via Google checkout, which allows users to make purchases online via their mobile devices.  Previously we talk about Starbucks mobile payment (here) and now it seems that Google is following next.  Google has teamed up with MasterCard Inc. and Citigroup Inc. to add new technology in Android devices which will allow for consumers to make purchases by waving their phones in front of a small reader at the checkout counter.  The planned system will also allow Google to offer retailers to get more data about their customers which they can use to target their ads and discount offers to mobile-devisers near their stores.  The idea is to turn the mobile devices into a kind of electronic wallet.  

Consumer advocates, meanwhile, are concerned that a mobile system would bring higher fees and brings upa question of whether or not consumers actually want this new system.  "It is possible to make a system that's too easy to use, where you reduce so much friction from the transaction process that people aren't necessarily aware of what they're spending on something?" asked Jan Chipchase, executive creative director at the design firm Frog Design, who studies mobile payments.

What do you think? If this new system brings hidden fees, will it be worth it?  Or is this something that you can live without.

Is swiping the easy part?

M. Alexandra


http://www.thestreet.com/story/11053577/1/googles-mobile-payments-challenge.html?cm_ven=GOOGLEN
http://www.nytimes.com/2011/03/24/technology/24wallet.html
http://www.businessweek.com/technology/content/dec2010/tc20101231_087039.htm

Can MySpace survive the Facebook era?

Before Facebook there was MySpace. It was easy to use, fun to show your own views without having to be too computer savvy. It also created a unique way to meet people, keep in touch with people around the globe and for new artists to come out and become known. It was the number one social media site, especially used for entertainers to promote their services. MySpace had 27 million members by end of 2005 when it was bought by News Corp. So what went wrong? Maybe it was the start of Facebook or maybe it was due to changing times; but that is all in the past. Now, can MySpace survive? Maybe. There are some things that could be better, such as:

• Eliminate spam.
• Better page customization.
• AJAX enabled features.
• Monitor requests for tech support and respond quickly.
• Faster load times. Solve the bandwidth problems.
• Allow a single email address to be linked to multiple MySpace accounts.
• Fix the broken code in the "search friends" feature.
• Allow simple yes/no confirmation requests to occur in an Ajax pop.
• Allow bands to post more than 4 songs.
• More focus on Blogs.
• Allow friend control.

For MySpace, it is not enough to be a place for bands mainstream. MySpace needs to improve their features and advertise more in order to bring in the masses. I know I have a MySpace account and cannot remember the last time I checked it out. Never mind the fact that it has been hacked a couple of times, which is probably why I never access the page. It adds more to the fact that it needs major improvement.

So will this be enough? Maybe not, all I know is that if MySpace wants to survive they will need bigger and better changes just to keep up.

M. Alexandra Torres

http://downloadsquad.switched.com/2007/09/26/10-ways-myspace-can-and-needs-to-improve/

http://www.myspaceplease.com/myspace-update.php

How to save MySpace
How to Save Myspace from a Slow and Painful Death

Social Media shaping companies

Social websites are no longer used just for socializing. Many companies have been testing marketing in such pages as Facebook, Twitter, and even Blogging, in this process they have been acquiring friends, followers and fans. I know I often click on those little ads on the Facebook page, as a matter of fact I bought a cruise that way. So what does this mean? According to recent data from comScore, Facebook now accounts for 12.3 percent of the time spent online in the U.S. versus 7.2 percent just a year ago. Twitter now counts approximately 200 million accounts and over 110 million tweets per day. Due to this major increase in online use of social websites, many companies are looking for ways to engage on the social web.

Major companies such as Dell and Best Buy are using social media to access more customers online. Even the Superbowl has become part of the social media phenomenon; Audi made a direct Twitter reference in its "Release the hounds" ad featuring the hashtag #ProgressIs to enter a contest to win “Old Luxury” prizes and support charity. Another Luxury brand joined for the first time the big game commercials by showing "Tweet Race" from Mercedes--This commercial campaign utilizes Facebook and Twitter to support celebrities races to the Super Bowl. The best commercial that used social media was the Volkswagen commercial "The Force" which teased the ad in YouTube prior to the game. With this move, they peaked curiosity in such a way that it was a hit on Facebook and Twitter, little did they know that this was going to result in 16 millions views. Not too shabby, this was a great move for Volkswagen's team.

The Super Bowl was definitely one way that marketing has become "social" who knows what the future will bring.

What do you think the future holds with social media? Do you think it will continue to grow or do you think it will become a miss? What commercials have left you wanting more?

Click on...

Maria Alexandra Torres

Sources:

http://www.toprankmarketing.com/social-media-marketing/

http://www.toprankblog.com/2011/02/social-media-super-bowl-overhyped-underperformed/

http://www.toprankblog.com/2011/02/5-b2b-facebook-marketing/

Starbucks Goes Mobile

What does a store that seems to have everything hopes for next? Get an App of course.

In this digital age everyone seems to be more on their phones than anything else. If it is not available in a phone is no longer important, or so it seems. So with this in mind, the mega coffee guru known as Startbucks decides to up one more by creating a Startbucks Card Mobile App. This app is incredible, you can see where the local stores are, contact numbers, directions, and if they are currently open for business or what their hours of operations are....very useful on holidays when the hours are not what you are used to.

You can also save your drink order so that you can repeat that wonderful experience of a great drink, or to remember those confusing orders that your friend requests when you are picking up their drink.

There is more, remember that wonderful Starbucks card that gives you a free drink on your birthday? well you can have your information such as the card number and use it to pay for drinks without having to carry the card with you, just by waving the phone which has a unique barcode on its screen over a barcode reader at the register.

So what does this mean for Startbucks?

Convenience? Check

Ease of use? Check

Speedy checkout? Check

Compatibility? Unfortunately, this is only available for the iPhone through Apple's App Store; but don't worry, they are working on an Android version.

But how secure and accurate is this? Well, that my friends is still waiting to be determined.

Bring on the Java!

M. Alexandra

http://e-marketingforsensiblefolk.blogspot.com/

http://www.computerworld.com/s/article/348055/Starbucks_Tries_Mobile_Payments

http://reviews.cnet.com/8301-19512_7-20029001-233.html