Google Offers – Google’s response to Groupon – has begun testing its BETA service in New York City, Bay City Areas (Oakland/East Bay, San Francisco) and Portland, Oregon.

Google Offers is soon to be the new player in the Daily Deal Sites market, competing against industry leader Groupon, Priceline, Living Social and the many Groupon copycat websites already online.

Where Google Offers holds its advantage is in the large number of users and advertisers flocking to Google daily. By signing up to Google Offers, you will receive discounts via email in any or all of the available cities. Google has begun testing its BETA version in the following cities and areas:

  • Portland, OR
  • NYC Downtown
  • NYC Midtown
  • NYC Uptown
  • Oakland/ East Bay
  • San Francisco

The splash page prompting users to sign up began showing up on Thursday. Businesses and Users who do not live in the areas mentioned above can fill out a quick form, in which you provide your email address and zip code and Google will update you once Google Offers is available in your area.

Google Offers is part of an ongoing effort at Google to provide new services that give consumers great deals while helping businesses with customers in new ways.

It is much too soon to determine the impact of Google Offers. Still, by testing the BETA service in large metropolitan areas such as New York City and San Francisco, Google will determine what to do next with Google Offers. Are we going to start seeing Google Offers included in Places listings? Organic searches? Google Adwords campaigns?  Time will tell what will become of Google Offers, but it’s safe to say Groupon will keep a close eye on the competition as it begins testing in other areas.