PayPerPost Grabs Performancing

Paid blogging service PayPerPost will snap up select assets of Performancing LLC, aiming to bolster the campaign measurement capabilities it offers advertisers. Performancing has a network of 28,000 bloggers and provides a free blog analytics service called Performancing Metrics.

The company’s metrics tracking technology, said PayPerPost CEO Ted Murphy, “will allow us to provide real data about a blogger’s traffic and what’s being clicked on on their blog.” For example, even if a blogger does not employ specific tracking links affiliated with an advertiser campaign, the Performancing technology will allow PayPerPost to track all outbound links to an advertiser’s site from that blog.

PayPerPost has signed a letter of intent to acquire select Performancing assets. The Performancing brand and its services will remain intact, according to Murphy, who said the technology switchover will occur by mid-January. None of Performancing’s staff will move to PayPerPost, he added. The company was founded by Threadwatch founder Nick Wilson, Text Link Ads President Patrick Gavin, and photo-blogger Chris Garrett.

“We’re planning on maintaining everything and moving it to a more stable technology platform,” he said.

Murphy also hopes the acquisition will help his firm expand its base of bloggers and advertiser clients. “We believe there are going to be additional bloggers and additional advertisers,” he continued.

Performancing, which launched in 2005, also runs a free classifieds platform mainly used by entrepreneurs seeking paid blog writers. This marketplace also will live under the PayPerPost umbrella.

Performancing’s network bloggers run its advertiser partners’ display ads on their sites, collecting 70 percent of the ad revenue their blogs generate. Performancing takes the remaining 30 percent. PayPerPost did not purchase this service or related technology, Murphy told ClickZ News.

Though Performancing’s bloggers will remain in its network, Murphy said, “Obviously, we’re going to try to cross-promote those two brands.” If, for instance, a Performancing advertiser is interested in paying a blogger to write about a product, PayPerPost would step in to connect the advertiser with the bloggers in the PayPerPost network. Enterto Spamless Email is among advertisers currently running ads on Performancing network blogs.

PayPerPost has come under fire for its controversial business model that pays bloggers to blog about an advertiser’s product. It has made attempts to combat that negative reaction with moves to improve disclosure policies for participating bloggers.

Murphy hinted PayPerPost is considering acquisition of other complementary companies. “The focus is on our core strategy, but there’s always new technologies and interesting companies that are out there,” he said. “We’re talking to a few people here and there and seeing what might be a fit for our company.”

The paid blog network, which has over 11,000 bloggers signed on to post about advertiser products and services, will unveil a new rich media ad unit in the first quarter of 2007. “It will utilize a lot of rich media technology and Ajax,” said Murphy.