The biggest news in the technology and startup communities over the last few days has been Google’s rumored acquisition of daily deal site Groupon. The numbers being thrown around for the purchase price are huge, to say the least. The figure that I believe to be correct is $5.3 billion with a $700 million earn out.
You may be asking yourself, “What does this have to do with digital out-of-home media?” At first glance, the acquisition appears to be a land grab for Google, purchasing one of the hottest startups of the moment in a growing market. Group buying and daily deals are here to stay. What some believed would be a simple fad has grown into an enormous market, with more copycat competitors than one could count.
So again you ask, “Where is the connection to digital out-of-home media?” The connection lies in the real reason why Google wants to purchase Groupon. And, it’s not simply to acquire a market leading position in the group buying sector. The driving factors behind Google’s multi-billion dollar play for Groupon are advertising, social media, and local commerce. These elements are key to the growth of the digital signage and DOOH industries as well.
Groupon is an ideal vehicle through which to promote Google’s breadth of advertising products and services. In a world of daily deals, the promotions that will garner the most attention are the ones supported by awareness-building advertising campaigns and search engine marketing. Groupon has only begun to scratch the surface of its long tail growth potential. With Google driving its expansion, the company’s “one deal per city model” is set to transform into an “infinite deals per city model.” That transformation necessitates the use of real-time advertising platforms to generate consumer awareness.
Groupon’s growth requires the adoption of tactical advertising campaigns by its expanding number of clients. The deals that get the most attention will be a mix of the ones that provide the most value and those that are supported by significant ad dollars. To bubble up from the pool of daily deals will require local businesses to optimize their promotions through AdWords, Google Places, Doubleclick, etc. In the end, it’s about advertising, which just so happens to be a driving force behind digital signage and DOOH.
It is my strong belief that place-based digital media will play a significant role in the future of real-time local advertising. It is only a matter of time until savvy marketers utilize DOOH networks and in-store digital signage to actively promote Groupon daily deals. With more deals in the stream, leveraging media platforms like digital signage will be necessary to generate consumer awareness.