Google has failed in its $6 billion attempt to buy Groupon last month, so now the Internet giant is planning to launch their own version.

Mashable has reported that Google is planning to offer a similar service to Groupon and LivingSocial. Consumers will be able to receive notifications about local deals in their email. Just like with Groupons deals there will be a time limit on taking this offer up.

The online deal industry burst into life with Groupon last year and has gone from strength to strength since then. In December, Amazon invested more than $175 million into Groupon-rival site LivingSocial.

This investment showed first results this week when LivingSocial offered a $20 Coupon for Amazon for just $10. The company’s initial report on the success of the offer shows that more than $1 million worth of card were purchased in 24 hours.

Google’s actions may actually validate the long term sustainability the success of this business model with its decision to build its coupon service.

A spokesperson for Mashable said Google was testing the waters by getting in touch with small local businesses and initiating pre-paid voucher programs. The spokesperson said that this was another example of Google’s new product initiative, in line with Offer Ads (beta) and others.

Google’s site is desperately trying to participate in the social networking craze, but so far all of its attempts to enter that space have failed.  The Google coupon site potentially change that by combining Google’s massive marketing reach and its relationships with millions of advertisers.

Google has failed in its $6 billion attempt to buy Groupon last month, so now the Internet giant is planning to launch their own version.

Mashable has reported that Google is planning to offer a similar service to Groupon and LivingSocial. Consumers will be able to receive notifications about local deals in their email. Just like with Groupons deals there will be a time limit on taking this offer up.

The online deal industry burst into life with Groupon last year and has gone from strength to strength since then. In December, Amazon invested more than $175 million into Groupon-rival site LivingSocial.

This investment showed first results this week when LivingSocial offered a $20 Coupon for Amazon for just $10. The company’s initial report on the success of the offer shows that more than $1 million worth of card were purchased in 24 hours.

Google’s actions may actually validate the long term sustainability the success of this business model with its decision to build its coupon service.

A spokesperson for Mashable said Google was testing the waters by getting in touch with small local businesses and initiating pre-paid voucher programs. The spokesperson said that this was another example of Google’s new product initiative, in line with Offer Ads (beta) and others.

Google’s site is desperately trying to participate in the social networking craze, but so far all of its attempts to enter that space have failed.  The Google coupon site potentially change that by combining Google’s massive marketing reach and its relationships with millions of advertisers.