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Groupon has over 500 highly trained inside sales reps working out of their Chicago headquarters. These reps have established relationships with probably 100,00
by portman 16y ago
Groupon has over 500 highly trained inside sales reps working out of their Chicago headquarters.
These reps have established relationships with probably 100,000 [1] local businesses who are willing to spend money on online advertising.
Google's existing advertising products are all self-serve. (Large accounts get assigned a rep, but only ex post facto.)
This acquisition makes a ton of sense: Google gains a kick-ass AdWords sales team. With every Groupon sold, they would have the opportunity to ask the merchant "Can I tell you about our AdWords program?"
[1] My estimate: 730 days of deals, 3 deals per day, 50 cities = 109,500 deals. Granted, not all cities have side deals, and not all cities have been live for all 730 days, but they're closing in on 100,000 merchants fast.
- hugh3 16y agoThis acquisition makes a ton of sense: Google gains a kick-ass AdWords sales team But for two and a half billion dollars?
- bobf 16y agoYou don't think a kick-ass adwords sales team could generate billions upon billions of revenue for Google?
- portman 16y agoNo. Most of the $2.5B is because of the phenomenal revenues that Groupon is currently generating. But Google isn't just interested in revenues, otherwise they would buy a small oil company - they are interested in Groupon because they are profitable and provide an asset that plays well with Google's core product.