Publicis Buys Google’s Performics In Attempt to Tap Digital Ad Market

In its latest attempt to tap into the dollars flowing to digital marketing, Publicis Groupe is buying Performics, the search marketing agency owned by Google Inc. Terms of the deal weren't disclosed. Performics, a 200 person firm based in Chicago, became part of Google last year with its $3.2B acquisition of the Internet ad services company DoubleClick. Its clients include Hewlett-Packard and UAL's United Airlines. Rumors Google would unload the division have been circling ever since its DoubleClick acquisition because of conflict of interest issues: Google has been criticized for owning a search marketing firm that works to improve results on its own search engine. As Google attempts to woo bigger marketers to boost its ad-sales, Madison Ave. is leery of the Internet giant stepping on its toes. Shedding itself of the search marketing div. gives Google a degree of separation. Publicis was among a number of bidders for Performics, which is among the largest search marketing shops with offices in San Francisco, NY, London and Singapore. Publicis says its deal was not tied to any media buying and that it is just buying the Performics assets. Publicis's move is the latest in a long string of digital acquisitions being made by advertising giants under pressure to bulk up on digital ad skills in an effort to make sure the dollars flowing to Web marketing remain in their coffers. The advertising companies also have been striking alliances with the major Internet companies to develop new digital ad technologies. In June, Publicis unveiled a digital-advertising system called VivaKi Nerve Center that links together technologies from Google, Time Warner.'s AOL, Microsoft and Yahoo. While Publicis Groupe already has a handful of other search marketing assets, Performics will become a part of the VivaKi Nerve Center. He, who leads VivaKi Nerve Center, said demand for search is coming from their clients and relies on  ability to innovate their tools & technology. He says the acquisition will be an important tool for Publicis as it tries tap into the search marketing business in international markets.