By: Jennifer Saba Earlier this week, Google said it will offer users of Google Map printable coupons through a partnership with Valpak. While it will take some time for the service to ramp up, Merrill Lynch analyst Lauren Rich Fine thinks that overall the move represents a threat to newspapers.
?We believe this has serious long-term negative ramifications for all participants in the coupon segment, which include newspapers, ADVO, Catalina, Valassis and many others? she wrote in a note.
The concern: Google is working its way into the local market and business might take to Google as online local offerings become more developed.
?Newspapers primarily garner a distribution fee from News America and [Valassis] but potentially could be threatened by a move of local advertising, coupons or otherwise, online,? Fine wrote.
Meanwhile, ADVO could feel the pressure immediately. Valpak distributes coupons through the mail, like ADVO. (Also, Valassis announced it plans to acquire ADVO.)
?We think the near term impact is minimal, but longer term we have some serious concerns about the competitive landscape.?
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