Mention the phrase "affiliate marketing" in a crowd of Web professionals and even the hobbyists light up. By placing ads on their pages that typically produce a commission if a click results in a sale or a lead, affiliate marketing has become a viable means for content sites of all sizes to nickel and dime their way to profitability.
That's why ValueClick's
That's where Commission Junction comes in. By managing the affiliate marketing for everyone from obscure startups to well-knowns like eBay
Relatively speaking, ValueClick looks like it's getting a bargain. The $58 million price is half of what the company paid in last year's stock acquisition of rival Be Free. By owning two of the largest players in pay-for-performance affiliate marketing, ValueClick takes another major step towards becoming an online advertising powerhouse.
Yes, Be Free has attracted quality merchants like Best Buy
Unlike other programs that only pay webmasters when certain minimums are met for individual sponsors, Commission Junction lumps them all together to get even the smallest site owner paid quickly. Commission Junction also provides a lot of statistical conversion data so publishers can pick out the more productive affiliates in the entire network.
So while ValueClick's capital appreciation may have priced much of the bargain value out of the stock, the case for growth is becoming more compelling.
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