Obviously, when you announce an acquisition the size of GSI Commerce's purchase of FetchBack, there's going to be plenty of reaction -- both positive and negative. I sent a reply to some opinionated posts here and here that I think is appropriate to post here on BLB too.
Interesting points from Jeffrey Zwelling at Convertro. First off, I want to say I'm a fan of what he and Convertro have been up to -- tackling some really difficult and key issues and using what I understand is a very slick approach. That said, it's no surprise I have some issues with Jeff's post.
I think Jeff might have confused our company history with someone else. Since day 1, FetchBack has been focused on providing value, from a variety of pricing models (we've done CPA and CPM from the start) to advanced technology delivering dynamic ads, keyword-based targeting, and deep analytics. Our recommendation engine drives CTR higher than any other solution we've seen. The article correctly focused on our A/B testing which gives our clients the confidence that they're seeing the "True CPA" value of their campaigns.
FetchBack didn't do the deal because it had to, or because of a lack of technology or service or competitive pricing. We did the deal because it makes perfect sense -- GSI is an ideal partner for us, since the technology, customer bases, and value propositions are complementary for both FetchBack and GSI.
Our vision all along has been that retargeting will become just as basic a budget line item as paid search has. The question is, what will a successful retargeting strategy look like? Will marketers strike multiple deals with multiple campaigns like they do now with Google, MSN, and Yahoo? Aside from inevitable duplication, it's impossible to calculate the right frequency, right message, right placement using multiple platforms (a point made clearly on the Convertro site). Attribution management becomes exponentially difficult, to the point where some people are confused and jaded and lose confidence in retargeting.
We think smart marketers will retarget through a single, central provider -- like the SEM companies work with platforms like Atlas and Omniture. Retargeting is far from a commodity now -- unless you're talking about tacked-on, sidecar solutions that only graze the surface of retargeting's potential. Yes, it's pretty easy to claim you do retargeting if you're displaying a non-dynamic ad, generic to every user, without smart frequency capping or A/B testing or visibility into the site and network where it's being displayed.
The retargeting space is still in its infancy with more room to grow than nearly any other form of advertising on the Net. We're proud that FetchBack still leads the industry in technology, innovation, and ROI.
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