Google extended its reach Tuesday to businesses with little or no online presence through a free digital coupon service that requires stores to upload only very basic information.
extended its reach Tuesday to businesses with little or no online presence through a free digital coupon service that requires stores to upload only very basic information.
The announcement follows the launch of Google Base, a service that allows local businesses to offer logistical information about their stores that would show up in related searches and on Google Maps.
The coupon feature is available as a subsidiary service from Google Maps. Local businesses that are listed on Google Maps can upload coupon information such as the amount of the discount, the expiration date, and the offer code.
The business enters which locations are participating in the discount, and an image of the coupon will appear alongside the business’ listing on Google Maps.
Coupons will appear on Google Maps within hours of an upload. Users can print the coupons and redeem them at the appropriate locations.
Shares of Google rose $5.66 to $375.09 in recent trading.
Local Media Threat
Like Google Base, Google Maps coupons alter the local business landscape. Local radio stations, newspapers, and Pennysavers have generated much of their revenue from the local pizza shop, doctor, dentist, and corner hardware store.
By offering its Google Base listing and its Google Maps location and coupon services for free, Google is forcing local radio stations and other traditional media outlets to find new wrinkles for wooing advertisers.
Google is pushing the coupon service as a new way for small businesses to attract customers—the kind of customers that spend more time online than listening to local radio or reading the local paper.
Google is hoping that any success it attains among small businesses will drive this large body of potential advertisers to the web.
The Mountain View, California, company is also hoping that the built-in ability of online advertising to keep track of the numbers of people who view, download, and redeem coupons will impress small-business owners.
Valpak Alliance
Local radio stations and newspapers have also boosted their online outreach to local businesses but at this stage it could be tough for them to duplicate the kind of ad metrics Google can offer.
Google partnered with coupon specialist Valpak Direct Marketing Systems. The company, which is well known for its blue envelopes packed with coupons, will provide 20,000 coupons from its advertisers.
The arrangement is unusual because Valpak, a subsidiary of Cox Communications, generates its revenue from businesses using its coupon distribution services. Google’s coupon distribution service is free.
Cox Communications“It is Google’s responsibility to disclose financial details of our relationship if they so choose,” said Todd Leiser, vice president and general manager of Valpak.com. “We see this as an extension of Valpak.com, our web site where our coupons reside.”
Valpak’s coupons will be available on Google Maps.
Contact the writer:CMedford@RedHerring.com