eBay Enterprise Marketing Solutions announced the acquisition of AffiliateTraction, the leading Affiliate Marketing Agency. The acquisition’s goal is to further expand performance marketing efforts by eBay Enterprise. Terms were not disclosed.
eBay Enterprise Marketing Solutions CEO Michael Jones was quoted as saying the “AffiliateTraction acquisition will increase the size of the business by more than 30%, with operating expenses expected to rise not more than 10%.”
Greg Shepard, CEO and founder of Affiliate Traction added “After close examination, it became obvious to us that working very closely with one network would free up resources to provide better service for our clients as well as tighter cooperation with affiliates.”
In other words, eBay Enterprise Marketing Solutions needed to expand in order to compete with the continued growth of other top Marketing Solution Networks like CJ and Rakuten. Acquiring AffiliateTraction, among other acquisitions, will provide technology, a services arm and worldwide offices in US, Canada, UK and Australia to eBay Enterprise.
How does this acquisition change anything in Affiliate Marketing in Canada?
Affiliate Traction presently has offices in Toronto. eBay network is also not as strong or well known a network in Canada as the number 1 and 2 leaders in CJ and Rakuten. Questions that pop up include:
- Will these offices be taken over by eBay’s Affiliate Network team?
- Will eBay continue to operate Affiliate Traction as a separate Network?
- Will AffiliateTraction continue to manage the Affiliate Programs of Advertisers on other networks or only for those on the eBay Network?
In Canada, eBay is not as strong an affiliate network as others. They have less Advertisers and publishers than either CJ, Rakuten or Avantlink in Canada. eBay Enterprise presently has listed around 25 Advertisers in their Canadian Network. Avantlink has about 45 and CJ and Linkshare have 70 or more.
We certainly anticipate that more Advertisers and publishers will join the eBay Network in Canada specifically because of this acquisition. It will be both interesting and exciting to see how the growth of the eBay Network materializes over the course of the next year or two in Canada.
We congratulate both eBay Enterprise Marketing Solutions and Affiliate Traction for this acquisition.
The Press Release is below:
Wilkes-Barre, PA — January 11, 2016 — eBay Enterprise Marketing Solutions today announced that it has acquired AffiliateTraction, the largest and most well established multi-national affiliate marketing agency in the world. Terms of the transaction were not disclosed.
Headquartered in Silicon Valley, with offices in Toronto, London and Sydney, AffiliateTraction is a global, full-service performance marketing agency that specializes in incubating, managing and growing affiliate marketing channels for top brands and retailers. AffiliateTraction’s best-in-class technology recommends affiliates with which a retailer should work, and then optimizes those affiliates. For advertisers, AffiliateTraction’s system automates both dynamic attribution — telling retailers who they’re going to pay — and dynamic commissioning — telling them how much they ought to pay each affiliate. At the same time, insights provided by AffiliateTraction’s technology inform publisher decisions about the best advertising partners, empowering publishers to make better decisions and more revenue. AffiliateTraction’s Founder Greg Shepard, will become chief strategy officer at eBay Enterprise Marketing Solutions.
“This acquisition significantly enhances our performance marketing technology and enables us to better serve the complex, evolving needs of leading brands and retailers,” said eBay Enterprise Marketing Solutions CEO Michael Jones. “AffiliateTraction’s advanced technology gives advertisers and publishers an unparalleled view into their businesses—and allows them to add scale and exceed their performance marketing goals with incredible efficiency. By incorporating AffiliateTraction’s technology, unparalleled performance marketing talent and actionable insights to our Network ecosystem, we’ll be able to connect advertisers, publishers and agencies to drive commerce, true loyalty and growth in key markets around the world.”
“Over the past 15 years, working with virtually every network around the world, we have evolved alongside eBay Enterprise Marketing Solutions as a technology agency hybrid,” said Mr. Shepard. “Together we represent the most powerful technologies in the industry. The good news for agencies is that we will empower them with the same tools that contributed to our own growth and success. Publishers will now receive major enhancements, integrated into a single platform that features a massive base of premium brands. Our technical capabilities are second to none, and as our first order of business we will create a new genre in performance marketing.”
“We’ve had great success with AffiliateTraction, and we look forward to working with the wide array of quality publishers who work with eBay Enterprise Marketing Solutions,” said MonkeySports Ecommerce Director Tom Barr. “Combining the technology and expertise of AffiliateTraction with the innovation and cost effectiveness of eBay Enterprise Marketing Solutions is a big win for our business, our affiliate partners, and our customers.”