Is Google getting ready to roll out a local, mobile coupon offering? Industry observers could be forgiven for thinking so. For starters, the search engine giant has been steadily introducing enhancements and new products in the local mobile space, one of the most recent being Google Mobile Ads' new hyperlocal advertising feature, which gives the distance between the user and the local business.

Then there is the potential market size for such an offering - an update from BIA/Kelsey's U.S. Local Media Forecast indicates mobile local advertising will reach $2.02 billion in 2014 for a compound annual growth rate of 56.9% - as well as the resounding success of Groupon and its many many clones.

All of which surely have gotten Google's attention.

Google Offers

More to the point, Mobile Marketer just reported that a Google executive tipped his hand about the company's preparations for a product called Google Offers".  The Holy Grail for local advertising is location-targeted coupons, and we're building Google Offers to enable that, as well as click-to-call functionality for nearby businesses," said Mike Steib, director of emerging platforms. "If you have the ability to reach out to consumers nearby and pull them in using mobile, it's great for consumers and advertisers."

Later Rather Than Sooner

Greg Sterling, at Internet2Go, however is not so sure this is an imminent offering.  He spoke with Google shortly after the article appeared, although not with Steib, in a conversation that was mostly off the record.

His conclusion? "Google Offers is much more of an idea than a product at this point. What the talk in New York really means is that Google sees locally oriented advertising on mobile devices, driving calls and foot traffic into stores, as very powerful and desirable both for consumers and merchants."

Part of that calculus is coupons, which more than any other advertising vehicle have a direct impact on consumer purchase behavior, Sterling concludes.

Challenges

Steib hinted at a few reasons why Google may not be poised to come to market with a clear no-brainer as a coupon product. It does not currently have many local listings or local businesses advertising on its platforms, he said, despite the fact that it is a big priority for the company. Also to take mobile couponing to the next level, various players must agree on a technology that makes the redemption process work better.