Google Sells Search Marketing Business

Google has announced that its search marketing business, Performics, is to be acquired by Publicis Groupe, a France-based company. Publicis Groupe is more of a multinational search advertising business, which has offices in Chicago, San Francisco, New York, London, Hamburg, Sydney, Singapore and Beijing. The Google technology could really be of use to Publicis Groupe, since it works to meet the requirements of 150 clients, all of which stand for approximately 200 worldwide known brands.

"The acquisition of Performics will position the Groupe for significant growth by delivering a broad portfolio of clients into our operations. Performics will also bring widely-recognized talent and capabilities that can be embedded into the client teams inside Digitas, Starcom MediaVest Group and ZenithOptimedia. Not only will this acquisition bring critical mass to Publicis Groupe's formidable Search capabilities, but it will also enhance our affiliate marketing and overall performance marketing offering." says Maurice Lévy, Chairman & CEO of Publicis Groupe, about the deal.

The acquisition is not buttoned up yet, as the two companies still have to decide upon the closing conditions and then to wait for all the bureaucratic work to be completed. The actual collaboration between Google Performics and Publicis Groupe is expected to take effect in a couple of months' time, in the third semester of 2008.

Google's decision to sell its search marketing industry comes as a result of the increased popularity of the search-based spending market. As a Jupiter Media report indicates, this field is in continuous development. In 2008 alone, the purchase of goods and services that had been previously subject to a query brought in revenues of $9.9 billion. The annual growth rate is anticipated to reach 12% in the next four years, so the giant's decision to pass the responsibility along to someone else, someone more specialized, may be of good omen.

"Publicis Groupe has been a leader in the advertising industry for decades, and we believe Performics' growing business will benefit from being part of it," comments Eric Schmidt, Chairman and CEO Google. "We look forward to working with Performics as a partner."