Google has announced that it will sell Performics, the search engine marketing arm of Doubleclick.
As we reported March 12, Performics presented a major conflict of interest for Google as the service offered SEO services that were focused on improving site rankings in Google.
Tom Phillips, Director, DoubleClick Integration at Google wrote on the Google Blog:
It’s clear to us that we do not want to be in the search engine marketing business. Maintaining objectivity in both search and advertising is paramount to Google’s mission and core to the trust we ask from our users. For this reason, we plan to sell the Performics search marketing business to a third party. We believe this will allow us to maintain objectivity and the search marketing business to continue to grow and innovate and serve its customers. While we have not yet identified a buyer, we’ve received preliminary interest from a number of our current partners. Search Marketing will continue to run as a separate entity until the division is sold.
Phillips noted that Google will keep the affiliate marketing arm of Performics and integrate it into existing Google services.
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Excellent News!!!
Not entirely true, they will split Performics into two and then sell off the search engine marketing business and keep the affiliate marketing business.
I think they are now going to compete directly with CJ and other affiliate marketing companies.
wow imagine , google getting into the affiliate marketing business. Wonder if they will change their stance on click arbitrage if they can make an extra buck>? (I don’t think they will)
Joel
I should have added that, now added, apol.
I don’t understand if google wants to sell or split the affiliate marketing business. And why they want to do it?
I am not sure if it’s conflicting with pay-per-action development what they are currently doing.
There is some hidden strategy inside google to combine Search + pay-per-action (i thought performics will fit in here) + Google Checkout. When combining these 3 they can track the sales and demand more money than small click income.
It’s a win-win for both advertiser and google.
What’s the going rate for a SEM company these days?
I got this email just now from Performics:
As you are aware, Google closed its acquisition of DoubleClick on March 11, 2008. Since that time, we have been actively involved in integration planning for each of our products and business units. We have recently completed this process for the DoubleClick Performics business.
As a result of our planning, we are formally splitting DoubleClick Performics into two separately-run business units - Affiliate Marketing and Search Marketing. We plan to integrate the Affiliate Marketing business into existing Google operations, providing enhanced value and reach for our Affiliate advertisers and additional tools and monetization opportunities for our publishers. We plan to sell the Search Marketing business unit to a third party. In Europe, these plans and their implications for our employees are subject to consultation with staff and employee representatives, where applicable.
During this transition, we will ensure that customers receive the same high level of service that they have always experienced. For those of you who have DoubleClick Performics relationships that include both Search and Affiliate Marketing services, we will assign separate account teams for each service. We will contact you shortly with more information regarding your assigned account team.
The Search Marketing business will continue to run as a separate entity until the division is sold. All client data will, of course, be kept confidential. Please contact your
Search account manager for additional information.
We plan to continue to aggressively invest in and grow our Search Marketing business during this period of transition, and we look forward to continuing our relationship with each of our Search clients.
Thank you for your continued support of DoubleClick Performics.
Good.
http://www.metalglassfurniture.com
Phillips noted that Google will keep the affiliate marketing arm of Performics and integrate it into existing Google services.
DoubleClick can be sell?
They should sell it to me
I like SEO I just bought few startups and I am very happy with it.
SO glad they are keeping the affiliate marketing division. I got upset first but then I did a happy dance when I read that.
Mystery CEO
any guesses on how much the search arm is worth (or will sell for)?
It is good to see Google’s do no evil side.
“Maintaining objectivity in both search and advertising is paramount to Google’s mission and core to the trust we ask from our users.”
The DoubleClick-Performics/Google potential conflict of interest was a hot topic amongst search engine marketing firms at industry conferences and on notable forums.
Local Business Will Prevail
http://www.BringBuyers.com
Danny Sullivans post must have really got Google thinking hard about this one. Good move.
Don’t get so excited. G has already got what they need out of the purchase. Now they know exactly how seos get rankings. Have people not noticed the algo. jumping all over the place since the purchase. They want to crush SEO’s so people will use ppc instead of going after natural search rankings.
For how much? Why did google buy it in first place.
My guess is that they get $750 Million to 1 Billion for it. If they don’t sell by June 30th they will drop it to around $500 Million so that they are sure that it gets sold in this fiscal year. They aren’t going to want this on their books come December 31st.
This is a dumb move by google why will you buy a search engine optimization company. It like double standard. So if you have money you can buy the secret of getting your site on top of Google organic search. I knew this was comming.
YouYap.com
@YouYap
Performics was part of the DoubleClick deal.
I know you are just spamming for your dotcom, but at least pay attention.
Excellent news.
That conflict of interest was deadly…
Matt Cutts just posted about this too — saying that he had wanted to see this happen since he read SearchEngineLand’s open letter (albeit privately, as he couldn’t diss the mothership until they made this announcement).
Great News!
Great news.