Google Selling Off 'Performics'! Is it the End of Google Affiliate Network?

Aug 7, 2008 | 1,242 views | by Navneet Kaushal
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Via the Google Press Center, Google has announced that it is selling off Performics to Publicis Groupe, which is the world's fourth largest communication group. Performics, as of now has over 150 search engine marketing (SEM) clients, and represents over 200 top global brands.

google6 Google Selling Off Performics! Is it the End of Google Affiliate Network?

Here is how the Performics saga began:

The story began in March 2008, when I informed our readers about Google's acquisition of DoubleClick, with which Google also inherited Performics, that was DoubleClick's affiliate advertisement network feature.

Then last month, Google introduced the Google Affiliate Program, that saw the introduction of Performics as Google's mainstream search marketing advertising platform and finally Performics was ready to see some action.

However, the latest news about the selling of Performics to the Publicis Groupe, has put a big question mark on the future of Google Affiliate Network, that is still in its infancy.

Here is the Press Release of the new deal:

Paris and Mountain View, Calif. (August 6, 2008) – Publicis Groupe (EURONEXT Paris: FR0000130577) and Google (NASDAQ: GOOG) announced today that Publicis Groupe has agreed to acquire the Performics search marketing business (Performics) from Google. Chicago-based Performics, one of the leading search marketing services providers, helps to improve the performance of advertisers’ investments and maximize client campaign effectiveness. Its profit-driving suite of marketing solutions includes Performics’ reporting platform, local platform, advanced market expertise and active account management.

The acquisition of Performics will enrich Publicis Groupe’s strong search capabilities and strengthen the offering of the VivaKi Nerve Center, a new strategic entity launched by the Groupe last June. VivaKi leverages the collective scale of Digitas, Starcom-MediaVest, Denuo and Zenith-Optimedia to develop new services, tools and partnerships, including new and emerging performance marketing platforms. The VivaKi Nerve Center includes a number of performance marketing assets, including Phonevalley, Webformance, Click2Sales and iBase. The addition of Performics will deliver a full and enhanced suite of performance marketing tools and capabilities to Publicis Groupe agencies and their clients.

Launched in 1998, Performics now employs nearly 200 search marketing specialists with employees in Chicago, San Francisco, New York, London, Hamburg, Sydney, Singapore and Beijing. The business will report into Curt Hecht, President of the VivaKi Nerve Center.

Performics will position Publicis Groupe and its clients to capitalize on the increasingly profitable search spending market. According to Jupiter Media, the search market represented an estimated $9.9BN in 2008 and is projected to grow at a 12% compound annual growth rate through 2012. Performics has over 150 search engine marketing (SEM) clients, representing over 200 top global brands.

“Publicis Groupe has been a leader in the advertising industry for decades, and we believe Performics' growing business will benefit from being part of it,” said Eric Schmidt, Chairman and CEO, Google. “We look forward to working with Performics as a partner.”

Maurice Lévy, Chairman & CEO of Publicis Groupe, commented, “The acquisition of Performics will position the Groupe for significant growth by delivering a broad portfolio of clients into our operations. Performics will also bring widely-recognized talent and capabilities that can be embedded into the client teams inside Digitas, Starcom MediaVest Group and ZenithOptimedia. Not only will this acquisition bring critical mass to Publicis Groupe’s formidable Search capabilities, but it will also enhance our affiliate marketing and overall performance marketing offering.”

The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2008.

About Publicis Groupe
Publicis Groupe [Euronext Paris: FR0000130577] is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media counsel and buying group, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 44,000 professionals. The Groupe offers local and international clients a complete range of communication services, from advertising through three autonomous global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty; to media consultancy and buying, through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; interactive and digital marketing led by Digitas; Specialized Agencies and Marketing Services offering healthcare communications, corporate and financial communications, sustainability communications, shopper marketing, public relations, CRM and direct marketing, event and sports marketing, and multicultural communications. For more information, visit www.publicisgroupe.com.

About Google Inc.
Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com

4.thumbnail Google Selling Off Performics! Is it the End of Google Affiliate Network?

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail Google Selling Off Performics! Is it the End of Google Affiliate Network?
4.thumbnail Google Selling Off Performics! Is it the End of Google Affiliate Network?