Does Google Offers beginning to gain momentum and become a serious player in the daily deal industry? According to a report from Yipit, Offers is on its way to more than double its revenue from last month. Also, Offers managed to improve its deal performances significantly.
Already 84% Rise In 3 Weeks
Just from the period between September 1st-21st, Offers already made in increase of 84% in revenue- From $265 thousands in August to $488 thousands in the first 3 weeks of September. If we factorize it furthermore, 45% increase came from existing markets and 39% came from new markets.
Although It is still very far from the Groupon $121 million monthly revenue and LivingSocial $45 million (data from this report), it is important to remember that Offers isn’t distributed widely as the other daily deals services yet, both locally and globally.
160% Increase In Deal Performances
The report also indicate that Offers had a meaningful increase of 160% in deal performances- From $2,794 revenue per deal in August to $7,256 revenue per deal in the first 3 weeks of September.
If we compare it to the top daily deals services Groupon and LivingSocial, we can see that Offers is still behind in an acute distance- 73% far from LivingSocial and 184% far from Groupon, but it gets closer and closer every month.
(See Graphs At The Bottom)
Google intend to be a major eCommerce service provider and taking the following actions to make it happened- Launching Google Wallet for better payment possibilities, styling Product Search, going after the mobile users with Catalogs and expanding Offers to new markets. Amazon, eBay, Groupon, LivingSocial, PayPal (and many more) be warned?