“Google has pocketed one affiliate network in favor of another.”
Google, the undisputed search and ad heavyweight is now entering into the affiliate-marketing business; today announced that it is re-branding DoubClick’s Performics Affiliate as the Google Affiliate Network as it continues to integrate new assets.
It is remarkable to see that Google has only unenthusiastically re-brand Performics. At the end of August, the world’s biggest ad broker will put an end to its AdSense Referrals program, the affiliate network it launched back in March 2007.
A lot of online retail merchant derives business through affiliate programs, either in-house or through an outside network, such as Amazon.com that runs its own program, and eBay recently followed suit, dropping its long-standing partner Commission Junction and taking its network in-house.
Normally, in a standard affiliate program, publishers place links on their Web site to online retailers or other e-commerce sites and collect a commission for each referral they pass along.
The unexpected launch comes as Google has long been discussing of new ad-driven business lines and integrating the recently acquired online ad powerhouse DoubleClick. Google, which established a great deal of its empire on blending ads with people’s search queries, is looking to expand its display-ad network through its new DoubleClick assets, and accelerate its video advertising both on YouTube and through the new AdSense for video product.
Google purchased DoubleClick in March 2008 for $3.1 Billion. The Google Affiliate Network so far has not been included into Google’s AdSense and ConnectCommerce.com will continue to host the affiliate network, but it will eventually be converted to a Google.com URL, Google said.
Among the larger retailers participating in the Google’s network are Barnes & Noble, Circuit City, Target, Kohls.com, Citibank, Zazzle, Bank of America and Verizon.
Although the login page is considerably aligned with Google’s other products, it only redirects users to the old Performics page. Besides, under its AdSense banner, Google already offers a number of pay-per-action options (though this is still a beta).
Yesterday, members of the AdSense Referrals program received emails announcing the program’s imminent death, and what’s more, they were recommended to join the new Google Affiliate Network. But the message also indicates that AdSense users can replace their referral ads with standard cost-per-clicks ads.
“We are constantly looking for ways to improve AdSense by developing and supporting features which drive the best monetization results for our publishers,” the emails say. “Sometimes, this requires retiring existing features so we can focus our efforts on the ones that will be most effective in the long term.”
The company assured advertisers an association with “pre-screened publishers.” For those publishers, affiliate deals mean either a commission on sales, or a fee when referring a qualified customer to the advertiser.
Publishers wishing to become part of the Affiliate Network will have to apply, even though they are already an AdSense client. Google also hinted at an AffiliateVIP status, with better visibility and presumably more lucrative ad spots for a qualified publisher’s site.
The re-branded network will place Google in rivalry with large affiliate networks such as ValueClick’s Commission Junction and LinkShare, a division of the Japanese concern Rakuten.
It is quite a turbulent time in the affiliate-marketing space. A controversial law took effect in New York last month that requires merchants who run affiliate programs to collect sales taxes on purchases made in that state, even if they do not have any employees or operations there.
Amazon and Overstock.com are fighting the law in court, but many fear that if it holds up, other states will follow suit, and affiliate marketers will become responsible for keeping track of overwhelmingly complex state and local tax codes.
Prior to the law, individual consumers were responsible for reporting out-of-state purchases on their income tax returns, but most people either did not know about that law or ignored it.
“In addition to its affiliate-marketing business, Performics also carries a search-marketing division, which Google is in the process of selling.”