Search Engine Watch
SEO News

Go Back   Search Engine Watch Forums > Search Engines & Directories > Google > Google AdWords
FAQ Members List Calendar Forum Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 04-21-2007   #1
chicagosem
Member
 
Join Date: Aug 2005
Posts: 5
chicagosem is on a distinguished road
Performics Acquisition - An Agency Perspective?

So Google bought DoubleClick and Performics with it for 3.1 billion (thats 3X more than the value of the NY Yankees). Performics is one of, if not the largest search agencies in the country.

Forget the conflict of interests of Google doing business the competitors such as Yahoo and MSN via Performics. I think this move may have rock the agency world in a couple of years if it hasn't already:

1) Google essentially took a huge step towards eliminating the need for a paid SEM or agency to do paid search by acquiring such a large search agency - They have direct contact with many fortune 500 Clients now. If clients can afford to pay an agency, then they have more money to spend on adwords if they eliminate the middle guy. They basically did just that with the Performics component of the acquisition.

2) They essentially bought information on advertisers conversion rates for pretty much every major vertical - by accessing both search and affiliate performance. Forget their free Urchin program where they can tap into your conversion rates and site performance by keyword, and forget about the Beta CPA program that just launched. If contolling pricing (based on their estimation of an advertisers profit margin) is their goal - they just bought everything they need to do this with this acquisition.

I dont think online agencies will completely go away, but I think this moves threatens their livelihood and is a catalyst for another algorithmic pricing model change. I think their widely accepted cryptic privacy policies and mysterious pricing algorithms can provide them with an easy platform to manipulate pricing based on what they think is in your wallet.

I would be curious on anyone's thoughts on the acquisition - especially if you work for an online agency?
chicagosem is offline   Reply With Quote
Old 04-22-2007   #2
AussieWebmaster
Forums Editor, SearchEngineWatch
 
AussieWebmaster's Avatar
 
Join Date: Jun 2004
Location: NYC
Posts: 8,153
AussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant future
First if Google goes too far they will be hit with antitrust problems..

Also while Performics is a good agency once they become part of Google I think some of their tactics may be curtailled more then them having access to the algorithm.

And if they did give some insight the employees would eventually out it here and there....
AussieWebmaster is offline   Reply With Quote
Old 04-23-2007   #3
abbottsys
Oversees AdWords
 
abbottsys's Avatar
 
Join Date: Feb 2006
Location: New York
Posts: 923
abbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud ofabbottsys has much to be proud of
Well, if you look at the bigger picture.. with worldwide ad spending being around $300 - 500billion/year, and google currently pulling in just $1billion/month, you can see there is still a ton of potential for someone to build a next generation ad platform and grab more market share.

In fact, you could say that google's current slice of the pie is but the tip of the iceberg. This next generation ad thing has only just begun. Scary
abbottsys is offline   Reply With Quote
Old 04-23-2007   #4
AussieWebmaster
Forums Editor, SearchEngineWatch
 
AussieWebmaster's Avatar
 
Join Date: Jun 2004
Location: NYC
Posts: 8,153
AussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant future
I think recent purchases by Google show how much they have set their sights on becoming a media conglomerate - forget advertising... they want the whole industry... guess they did not learn anything from Microsoft's antitrust headaches...
AussieWebmaster is offline   Reply With Quote
Old 04-29-2007   #5
Chris Boggs
 
Chris Boggs's Avatar
 
Join Date: Aug 2004
Location: Near Cleveland, OH
Posts: 1,722
Chris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud ofChris Boggs has much to be proud of
FYI we have spoken from an agency perspective our thoughts about how this deal could impact SEM.

Please see the first topic in last week's SMTrends Newsletter, and feel free to comment in here with any opinions as to the analysis.
Chris Boggs is offline   Reply With Quote
Old 04-29-2007   #6
AussieWebmaster
Forums Editor, SearchEngineWatch
 
AussieWebmaster's Avatar
 
Join Date: Jun 2004
Location: NYC
Posts: 8,153
AussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant futureAussieWebmaster has a brilliant future
Quote:
Originally Posted by Chris Boggs
FYI we have spoken from an agency perspective our thoughts about how this deal could impact SEM.

Please see the first topic in last week's SMTrends Newsletter, and feel free to comment in here with any opinions as to the analysis.
thanks for the link Chris
AussieWebmaster is offline   Reply With Quote
Old 05-01-2007   #7
seobrien
seobrien.com
 
Join Date: Oct 2006
Posts: 13
seobrien is on a distinguished road
With DoubleClick's new industry nerve center in place and Google making moves to become an ad network and media vendor (as opposed to an engine), I hope they hold on to Performics. Conflict of interest is an interesting argument in this case; Google sales sells ads on other websites, radio spots on clear channel stations, how can they support search where ever it might occur?
seobrien is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off