Google Offers coming to Canada?

We have stated it before and we will state it again: Google will eventually lead the Daily Deal industry. Period!

Google Offers is expanding quickly across the US, have recently purchased the leading aggregator in the industry The Deal Map, bought popular restaurant guide Zagat and have just acquired the German Daily Deal site Daily Deal.

Google has an enormous advantage at distributing their Daily Deals. Give them time, they will lead this market. The question is, when are they coming to Canada?

Probably not until they perfect their model in the US and not until they have added dozens more cities in the US. Although Toronto is the 2nd largest Daily Deal market behind Chicago. When they do decide to come to Canada, we anticipate that they will purchase an existing Daily Deal site in order to gain an immediate advantage. They have recently done just that in Germany. Here is our list of sites we would recommend to Google:

1. Wagjag (a great buy, but not likely. They are the number 1 Canadian site but they are owned by Torstar and doubtful that they would sell)

2. Swarm Jam (owned by Post Media, they would probably sell, but Swarmjam is not one of the top sites in Canada)

3. Dealfind (a great buy, but it will be expensive for Google to buy them given their VC investment and sales volume)

4. Dealoftheday from the Yellowpages ( a good buy, but doubtful that the Yellow Pages would want out of this industry. In fact, we anticipate the Yellow Pages to be far more aggressive within this industry over the coming year. In fact, they should be leading in Canada and it is a bit surprising that hey are not. Look for a future post on this topic)

5. Teambuy (Yes, my favourite buy. They are Canadian only, have energy, are coast to coast and are #3 or #4 in sales across the country. Given the price Google paid for the Daily Deal site in Germany, buying Teambuy would not be an issue)

6. Tuango (A BIG Yes. No matter what other site is bought across Canada, Google or any other suitor will not lead in Quebec unless they take on Tuango. Buying a leading site in Quebec saves millions and saves plenty of time. Quebec is not an easy market to penetrate. Ask Groupon. If Google buys, say, TeamBuy + Tuango, then that would be a rather strong entry into the Canadian market. Tuango is the key. There are other choices in Quebec, but none as large as Tuango.)

If Eric Rosenblum (boss at Google Offers)  happens to read this post, then here is my message to him and his team. DO NOT make the mistake that most other brands make when entering Canada; and that’s ignoring the fact that Quebec is it’s own market. Buy into the market with a brand that already has credibility here and it will make entry far less painful and more successful.

The true strength of Google is in their numbers:

* over 200 million gmail users
* Google mobile (android users and now Motorola users)
* Google Docs
* Google voice
* Google +
* Google web sites
* Google ads
* Google Places
* etc

Give them enough time and they will lead this market worldwide.

As for Canada: attention Canadian Daily Deal sites, Google is shopping. As the saying goes “Start Dressing the Bride”.

7 Comments
  1. adamscottcochran@gmail.com'

    Google Offers will be coming to Canada soon – as leaked by Ray Reddy at Waterloo’s A Night With Google Conference

    http://brandspiel.com/2011/10/15/savings-head-north-google-offers-canada/

  2. alfredj@aol.com'

    I heard this week, that Google and Ebay are looking at buying a Canadian daily deal site. Can anyone else confirm this? And does anyone know which site they are looking at buying? This should be pretty scary to Groupon.

  3. markadams707@yahoo.com'

    Why doesn’t Google just buy Groupon as well? It’s 11B in market cap is only 5% of Google. And I’m sure the Groupon founders would take Google stock in trade…

    • al@canadiandealsassociation.com'

      Mark, I highly doubt that Google will bother with Groupon. They will buy another before giving Groupon the satisfaction of all that money.
      It is in Google’s interest to continue expanding their local reach through acquisitions such as Zagat and the like. Buying Groupon comes with a whole lot of operational nightmares, they have over 10,000 employees at this point and many of which are in a sales role. Google is not a local sales organization, they are not structured that way and thus this will be an operational nightmare for them. Google has other strategies on dominating the local deals industry. I do not believe buying Groupon is one of them. Thanks for the comment Mark.

    • stevew@edgewiseps.com'

      lets not forget that google offered nearly 6 billion dollars, cash and stock, to groupon last year and they turned it down. I bet the groupon boys are thinking about the deal daily.

  4. Any news on the Google move on daily deals in Canada? With the new launch of the revised Google + for local I would expect the rest of the services to follow soon. Exciting stuff for Google +, now lets see the deals!

    • al@canadiandealsassociation.com'

      Although Google will eventually be in Canada, I doubt it will happen in 2012 or even 2013. They have a lot more cities to expand to in THE USA before thinking of an international play. They might, however, expand into other countries like Canada, Australia or those in Europe through an aggregator model, where they start accumulating consumer interest and clicks by promoting the deals of other Deal sites in that Local country. That would probably be a very smart strategy for them to start with in Canada. They would quickly become the country’s top destination for deals, even if those deals were not theirs.