Google Offers Bounces Back, On Pace to Double Revenue This Month

Aided by higher revenue per deal and increased voucher sales, Google has already surpassed its August revenue and could double it by the end of the month. Offers is also closing the gap in markets where it competes with Groupon and LivingSocial.


After a 23 percent decline in revenue for the month of August, Google Offers has seen an 84 percent rise in revenue as of September 21, Yipit reported. If that pace holds, Google could turn that $385,000 into $488,000 by the end of this month.

Why the turnaround?


Yipit reports revenue per deal is up 160 percent and vouchers sold per deal has increased five-fold.


In markets where Offers is competing with Groupon or Living Social, Yipit reports that Google is closing in on LivingSocial on average revenue per deal, and Offers is selling more vouchers per deal than both Groupon and LivingSocial. But Google still trails far behind these two big-name deals companies, and others, in market share.

This is good news for Google – though it’s still too early to draw definitive long-term conclusions this early based on only a couple months of data. Google’s promotional ad on its homepage for Google Offers, featuring tickets to the Museum of Natural History in New York, proved lucrative as well, grossing $85,000 – it’s most successful offer to date.

Yipit notes that some of Google’s success is attributable to working with high profile national and local brands, such as Fandango.

Google Offers is now available in Portland, New York City, the Bay Area, Austin, Boston, Washington, D.C., Denver, and Seattle, with a big expansion coming in the near future (Offers is coming to Atlanta, Baltimore, Brooklyn, Chicago, Columbus, Dallas, Detroit, Fort Worth, Houston, Indianapolis, Long Beach, Los Angeles, Miami, Milwaukee, Minneapolis, Oklahoma City, Omaha, Orlando, Philadelphia, Phoenix, Pittsburgh, Salt Lake City, San Antonio, San Diego, San Jose, St. Louis, and St. Paul).

Google has been busy working to improve the service by acquiring DailyDeal for the likely expansion of Offers to Europe, as well as Zave Networks, The Dealmap, and Punchd, which will all be used to strengthen Offers and likely further integration with Google Wallet, should it gain more mainstream adoption.

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