SOURCES: Google to Close Down Performics?
UPDATE: Performics President Responds to Speculation Over Google - Performics Dissolution Rumor - CLICK HERE.
Sources suggest that Google has or is in the process of closing down Performics, Doubleclick’s (DCLK) Affiliate Marketing Network.
Performics is the #3 player in the traditional affiliate marketing space behind Commission Junction (VCLK) and Linkshare, respectively. In addition, Performics is the largest SEM Agency in the United States and has clients including Target.com, America Online, Blair Corp., Bose, Cingular, CompUSA, Eddie Bauer, Fairmont Hotels, HP Shopping, J. Jill, Jos. A. Banks, Kohl’s, L.L. Bean, Motorola, OfficeMax, PC Connection, RedEnvelope, My Sony, Quickbook, Staples, Verizon Wireless, and Wyndham Hotels to name a few.
We can’t disclose our source but I can tell you that we’ve been receiving calls from Performics merchants saying that Performics employees were being let go.
It appears that Pepperjam’s phones are not the only ones ringing - see Shawn Collins AffiliateTip.com for more insight.
MAKING SENSE OF THIS RUMOR:
First, to me it completely makes sense that it would be a conflict of interest for Google to get involved in affiliate marketing and search-engine marketing management.
Therefore, owning Performics means that Google would be responsible for delivering advertisers return-on-investment (ROI).
My friends, Google is not about to get involved in that business - the responsibility and liability is of no interest to Google.
Second, Google is explicitly focused on advertising delivery, not management and consulting. The acquisition of Doubleclick made sense to Google because Doubleclick owns one of the leading online display ad delivery systems. While it is scary to think that Google would contemplate getting involved in management, I am convinced they can not and will not.
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April 19th, 2007 at 5:08 pm
[…] Sources: Google to Close Down Performics [pepperjamBlog] […]
April 19th, 2007 at 6:36 pm
Hey, Kris. Not that Pepperjam necessarily needs it, but it’d be great if this unleashes a torrent of transferring clients to your business.
April 19th, 2007 at 6:42 pm
“owning Performics means that Google would be responsible for delivering advertisers return-on-investment (ROI)”… loved that comment… a little tongue in cheek about Google not really owning up to ROI’s. Good job.
April 19th, 2007 at 6:42 pm
Daehee,
I can tell you that Pepperjam has no intention of dissolving anytime soon so we may indeed be the logical choice.
We have the resources to do everything that Performics does, including search-engine marketing, affiliate marketing, and online media buying.
However, I have personal friends that work at Performics so it is my hope that Google just sells the company off to a Valueclick (CJ) or a Ratuken (Linkshare) instead of dissolving it, which it sounds like they are doing. I mean, think about it, why would Google want to sell something to a company that is competing with them for advertising dollars….that’s why dissolution is more likely.
April 19th, 2007 at 7:36 pm
Well, It would be nice if they sold portions of the company to save those people their jobs (or give them a nice severance package).
April 19th, 2007 at 7:38 pm
[…] SOURCES: Google to Close Down Performics - Sources suggest that Google has or is in the process of closing down Performics, Doubleclick’s (DCLK) Affiliate Marketing Network. […]
April 20th, 2007 at 11:50 am
in response to Kris’ earlier posting, speculating on the future of Performics, this note was sent directly to him by our president, Stuart Frankel
———————————————————
I am writing in response to your recent post speculating that Performics is in the process of dissolving the company and terminating its employees. Your comments are false and are potentially damaging to Performics’ business and its employees. Since the announcement on April 13, 2007 that Google and DoubleClick have entered into an definitive agreement whereby Google has agreed to purchase DoubleClick, we have consistently and repeatedly communicated to our clients, publishers and employees that it is business as usual at Performics. Let me make this absolutely clear. We are not dissolving or shutting down or significantly altering the Performics business. To the contrary, we continue to actively build our core affiliate and search business units. In fact, we are currently recruiting for 25 open positions across all areas of Performics. In particular, our affiliate business has seen dramatic growth in 2007 and as a result, DoubleClick has accelerated its investment in this area of its business. We are a large supporter and participant in industry forums and we support an open and active dialogue regarding the affiliate marketing industry. Your comments are irresponsible and therefore I am requesting that you immediately retract them. We are proud of what we have accomplished thus far at Performics and look forward to aggressively and responsibly continuing to run and grow our business.
Stuart Frankel
President
Performics
April 20th, 2007 at 12:15 pm
[…] Home About Image Gallery Affiliate Marketing Search-Engine Marketing Meet the Pepperjam Team « SOURCES: Google to Close Down Performics […]
April 20th, 2007 at 12:40 pm
Why wouldn’t GOOG simply give fixed fee affiliate tracking to Performics clients who want to continue tracking/reporting on their few hundred affiliates (or less) and turn over all search clients (Performics’ real bread-and-butter revenue stream) to the same GOOG Account Executive that managed via Performics?
Hmmm?
April 20th, 2007 at 6:52 pm
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April 20th, 2007 at 9:51 pm
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April 21st, 2007 at 2:54 am
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April 23rd, 2007 at 5:24 am
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April 24th, 2007 at 2:13 am
[…] Kris Jones, CEO of PepperJam, received an email from Stuart Frankel, president of Performics, regarding a blog post he had made speculating that Google would shut down Performics, an SEO firm acquired along with DoubleClick. Apparently, Performics is scared that all the speculation about what Google has in store for them is going to cost them clients: RESPONSE FROM: Stuart Frankel, President, Performics […]
October 29th, 2007 at 10:31 am
[…] read more | digg story […]
April 2nd, 2008 at 8:43 pm
[…] Some of you will remember that I predicted right after the initial announcement of the Google / DoubleClick acquisition, that Google would likely dissolve or sell Performics. […]