Brett_Tabke - 3:08 pm on Dec 17, 2010 (gmt 0)
>simply because Groupon is in a new market/niche that Google is not in at all.
No it isn't. It is in Local Advertising. This is totally Googles domain. It competes directly with Google's "places" advertising option. Groupon's biggest competitor is Google.
The only place future growth is going to come from, is directly out of AdWords pockets as local businesses stop advertising on Google and put more dollars into Groupon. There is strong evidence that this is happening already. The biggest evidence? Google offering $5 big ones for this competitor.
> I understand why they turned it down and its
> unfortunate because they will never get another chance at that much money.
I would invite you two to go take a long hard look at Groupon. Coupon marketing is here to stay. They have figured it out - Google hasn't.
$5 billion? Will turn out to be pennies on the dollar. Some have said the market cap for coupon and deal marketing is as high as $50billion a year currently.