Google introduces daily deal adverts

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The search engine giant takes on rival Groupon with Google Offers discount deal for New York museum

Google has introduced adverts for daily deals to its famously clutter-free homepage for the first time, in what appears to be a bid to challenge Groupon, the hugely successful discount and offers service.

The world's number one search engine offered US users a deal on Wednesday, a rare instance of the internet giant using its prized online real estate for advertising.

The advert linked to its Groupon-style service, currently available in the US only, called Google Offers, and offered users tickets for the Musuem of Natural History – which would normally cost $25 (£15) – for $5.

The daily deals move comes just eight months after Groupon rejected a $6bn takeover offer from the company amid fears that it would have drawn an anti-trust investigation. Groupon has now filed for a flotation which could happen as early as next month.

Placing adverts on its homepage is a rare step for Google, which regards the clutter-free user experience as one of the key elements of its success.

Google only ever breaks with this rigorously guarded format to promote services it considers strategically important, such as its Chrome browser or its now defunct Nexus S phone.

Groupon is one of the stellar technology start-ups of the last three years with more than 115 million subscribers and has an estimated 600-700 companies trying to emulate its success including its nearest rival, livingsocial.com.

All are vying for a slice of Google's local advertising business – Google generated 96% of its roughly $29bn in revenue last year from ads that appear alongside search results.

"We occasionally include a link on the Google homepage that points users to important information, whether it be about a relevant cause, a new product or an offer," a Google spokeswoman said. "Users can benefit from learning about great deals from local organisations."

• Google
• Internet
• Advertising
• Digital media

Lisa O'Carroll

guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

02 Sep, 2011

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Source: http://www.guardian.co.uk/technology/2011/sep/02/google-offers-introduces-daily-deal-adverts
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