TechCrunch: "Commission Junction & LinkShare Are Screwed" | Unskippable - Marketing Keynote Speaker - Jim Kukral

TechCrunch: “Commission Junction & LinkShare Are Screwed”

In case you missed it, Google officially launched into the affiliate marketing business yesterday. Michael Arrington of TechCrunch says…

Affiliate marketing networks like Commission Junction and LinkShare are screwed. These networks also operate on a cost-per-action basis, mostly with online retailers. Even though some of them have scale, they will not have the ability to compete with Google on sheer size of network. Advertisers flock to volume, which drives average pricing up. When prices increase, publishers flock to the new platform because they’ll earn more. Look for serious publisher leakage from the big affiliate networks over time as this new product scales up. If you want to argue this point, note what happened to the stock price of Commission Junction’s parent company, ValueClick, today. And that’s even though the market has largely adjusted for this news already – this move to add PPA ads has been rumored for some time.

So is he right? Check out the Valueclick stock price dropping yesterday afternoon.

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You thought maybe Mike wasn’t sure about his belief? Later, in the comments he says…

Google is going to eat them alive.

I’ll reserve my opinion and default to much smarter people.

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