Google Swallows DoubleClick Performics, Spits Out Google Affiliate Network (GOOG)

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google-affiliate-ad-network.gifGoogle has finally launched Google Affiliate Network, its new name for Performics' affiliate ad network, which it acquired with DoubleClick earlier this year.

What is it? An ad network that pays publishers based on leads or sales -- "cost per action" -- not based on clicks or impressions.

Advertisers like this system because they only have to pay up when they make a sale. And publishers like it because of the variety of ad formats, including text-based links that can be included in editorial content. (It's also an easy way for a no-name publisher to get big-name ads on their site.)

"Amazon, watch out," is Erick Schonfeld's first take in TechCrunch's post about the relaunch. We're not sure what he's talking about: Amazon's (AMZN) affiliate program is handled in-house, without help from an outside network, so there's no overlap with Google's (GOOG) program. (Unless he's talking about the fact that Barnes & Noble is a Google customer. In which case, whatever.)

Who should watch out? Rival affiliate networks LinkShare, owned by Japan's Rakuten; and Commission Junction, owned by ValueClick (VCLK) -- who could easily lose their big clients, or attention/ad inventory from publishers. ValueClick is already down: In March, it lost a big account in eBay (EBAY), which took most of its affiliate ad program in-house.

See Also:
eBay Dumps ValueClick For Affiliate Ad Program
AOL Picks Up Affiliate Marketer Buy.At
Amazon MP3's Buzz-Building Plan: Pay Affiliates 4X What Apple Does



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3 Comments

Shawn Collins (URL) said:
I'm curious why you would think Commission Junction and LinkShare would be vulnerable to losing big clients to the Google Affiliate Network?

They've been going head to head with Performics for a decade.

I agree that attention from affiliates could shift, but I don't see the major affiliate programs moving over just for the novelty of being with Google.

Performics was a closed affiliate network for years and only became transparent in the last year or so...so its no competition to CJ or Linkshare at this point. Thye have long way to go to woo away affiliates of these huge networks. Advertisers might get curious, but there's nothing wrong with launching on GAN as well as on CJ for example, which is what most of my clients do.

abcyesn (URL) said:
Google needs to do a few things in order to compete with cj, linkshare and clickbank.

1) improve its customer service.
2) make a faster/easier to use website.
3) better accounting information.

http://www.affiliate-google.net

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