Couple that with local search and maybe a dash of Google Latitude and you can have thousands of tiny Groupons at the exact point where users are located.
5 or 6 billion reasons why Google loves Groupon
But if there is one thing that explains Google’s affinity for Groupon is its pay-for-performance model. Groupon doesn’t get paid by merchants unless it delivers customers to their doors in the same way that Google does not get paid by search advertisers unless it delvers clicks to their websites. Through its online-to-offline coupons, Groupon has figured out how to track that last mile in local online commerce between the ad and customers showing up at a store.Erick Schonfeld of TechCrunch