Posted August 6, 2008 3:27 pm by with 15 comments

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Last March Google acquired DoubleClick and it’s affiliate and search marketing arm Performics. That sent some chills up the spine of a lot of companies who saw it as a conflict of interest. Today it was announced that Google is selling a part of Performics, to Publicis Groupe, one of the top four global advertising companies.

Just this June Google rebranded Performics to the “Google Affiliate Network” but seemed to have done little else with the division. That was a relief since Google is the world’s largest search engine and they owned a company who tried to get their clients to the top of search results.

Google’s blog noted they still intended to sell the search marketing division of Performics: “As noted in earlier communications, DoubleClick Performics’ Search operations are being spun off and sold to a third party. While many advertisers have relationships with both DoubleClick Performics’ Affiliate and Search, there have always been separate account teams and product-specific specialists servicing clients’ search and affiliate programs.”

Last year Google disclosed that they had been working with Publicis Group. No doubt they are working to bridge gaps between the print advertising and online advertising worlds. Google needs to better service agencies and agencies want to expand their online offerings. Google will continue to benefit from this partnership without the conflict of interest they had when they owned it.

Publicis Group can now offer SEM services (paid search and search engine optimization) to their clients and develop technology to manage this across search engines. Performics has over 150 search engine marketing (SEM) clients, representing over 200 top global brands.

The deal is expected to close at the end of this year.

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  • Jef

    Makes sense. I’ve been impressed with how big Google has become in so little time and yet, they still feel like a small company. Hopefully that keeps up and they are not the next MSFT.

  • Jason Baer

    Publicis has stated that they want 25% of their overall revenue to come from digital by 2012, and this acquisition will help make that a reality. There’s not that many serious search marketing agencies that have the scale necessary to fit in with Publicis, it’s still a very fragmented market, so the Performics acquisition makes sense.

    Plus, Google and Publicis have a long-standing cross-functional relationship, including sharing of executives and intellectual property.

    Interesting that many smaller, traditional agencies totally eschew search marketing as “too complex” and “not worth it”. I wonder if this acquisition will change some minds in that regard?

    I just wrote a post with more commentary and context: “The Truth About Publicis Buying Performics.”

    Jason Baer
    Convince & Convert – Digital consulting for agencies

    Jason Baer’s last blog post..The Truth About Publicis Buying Performics

  • Fifty Studio

    What is with these big companies like Google renaming everything with “google” in it? It dilutes the brand.

    Fifty Studio’s last blog post..Utah Freedom Run

  • Nicole Price

    Google is becoming a proper corporation, driven by the bottom line. Good for everyone concerned.

    Nicole Price’s last blog post..Best Companies to Work for

  • Tiffany

    Most of internet based companies are very dynamic. But Google is the most dynamic one especially in changing the regulation and making decision.

  • Ashley

    Google is the very internet company one can rely on

  • Symbian

    It was really strange situation, why they haven’t done this earlier?

    Symbian’s last blog post..Nokia Chat – new location based messenger

  • Otilia Otlacan

    Sure, this was the honorable thing to do for Google, selling Performics.
    However, their long-time numerous ties to Publicis makes the move pretty useless for the small advertiser while facilitating worrying levels of services for the big ones. Dust in one’s eyes, IMHO.

    Otilia Otlacan’s last blog post..Metacafe Gets to Monetize Content from 12 New Video Content Providers

  • PS3

    Jef, I have to disagree totally. Google doesn’t feel like a small company, not on my planet.

    Neither does eBay.

    The exception is Amazon, who never cease to amaze with fantastic service.

  • Utah SEO Pro

    Good move. I think it was causing them a reputation issue.

    Utah SEO Pro’s last blog post..Mobile SEO – SMX Local Mobile 2008 Presentation

  • Dr Marketing

    Having a centralised marketing team would probably make more sense.

    Dr Marketing’s last blog post..Blog commenting and Akismet

  • Millionaire

    they made a good sale at this point… it was a good positive change for the company and they didn’t need it anyways

    Millionaire’s last blog (Meet Rich People Online)

  • Watch Seven Pounds Online

    Let’s just cross our fingers that they keep words to their motto “do no evil” as they continue to get bigger and bigger and bigger…

    Watch Seven Pounds Online’s last blog post..Watch Seven Pounds Online Instead Of Going To A Theater!

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