dgm Merges with Viva9: Australia’s Affiliate Marketing Monopoly

By Campbell Phillips | 31 Aug 2012

Parent company of dgm, Digital Performance Group has just announced it is acquiring competitor Viva9 and intends to merge the two affiliate networks.

Digital Performance Group (DPG), which already owns what it claims is Australia’s largest affiliate network dgm, is now on the verge of purchasing its major competitor, Viva9. In doing so, DPG will create a single affiliate network entity, which will benefit from the decrease in competition.

The acquisition sets up dgm as a potential leader in affiliate networks, with DPG highlighting its broad scope of offerings across comparison websites, coupons and loyalty rewards schemes, cash-back sites, content and eDM databases.

“dgm and Viva9 have been the leaders in the Australian affiliate market for the past nine years and together have worked with the majority of finance, retail and telco advertisers investing marketing dollars via affiliate networks in Australia and New Zealand,” DPG’s Managing Director Chris Meehan said in a press release.

“We expect there to be stronger growth in the affiliate channels particularly with the forecast strong growth in online retail as more retailers follow the international trend to launch online properties and shift more of their marketing dollars online.”

However, the question many advertisers will now be asking is whether or not dgm will continue to offer competitive rates, given that DPG now claims ownership of Australia’s largest affiliate network. This may be less of a concern in the affiliate marketing industry, which also has to compete with other marketing channels, however it is something advertisers will be keeping a close eye on nevertheless.

As a result of the acquisition, DPG’s other subsidiary, Empowered Communications, also stands to gain from a boost to its email database in the order of 600,000 addresses. Empowered Communications will therefore have further scope to supply eDM campaigns and research briefs.

“We acknowledge the great relationships with key publishers and eDM suppliers that Viva9 has built over the years and we are looking forward to growing these relationships across a much broader customer base for the publishers to include,” Meehan said.

UPDATE: This story has been updated to reflect inaccuracies as highlighted in the comments below.


4 thoughts on “dgm Merges with Viva9: Australia’s Affiliate Marketing Monopoly”

  1. Gary says:

    A few in-accuracies in the article above, DGM is not Australia’s largest affiliate network and never has been, that title would go to ClixGalore by far. Also there will not be a monopoly as there is Commission Factory, whom have had massive growth and ClixGalore. In terms of Fees, both Commission Factory and ClixGalore present better pricing models and don’t charge over the top setup fees.

    1. Hi Gary,

      Thanks for your keen eye for detail. I’ve updated the story to more accurately reflect dgm’s status in the industry. I would apologise for the previous poor wording – and I should clarify that it is Digital Performance Group’s claim that dgm is the number one affiliate market.

  2. Sarah says:

    Commission Factory? Really? Hardly a drop in the ocean. We’ve pitched them business, they seem friendly enough but very early stages and don’t seem to have the volume yet. Clixgalore? It’s hard to say who is biggest, but it’s certainly neither of those two.

    Spin it all you like, but if you think that their client lists would make either the largest affiliate network, ahead of dgm or Viva9 who have several banks on their books, as well as others, then you’re sadly mistaken.

    As for “better pricing models” well, that’s subjective, as is value. You get what you pay for I suppose, but as an agency who has used three of the above networks, I know that the value we’ve had from paying setup fees has generally been rewarded with their input and consultation. As one of the reps at Viva9 pointed out to us “You can hammer down our fees all you like, but do you want to encourage us to drive more volume?”

    1. Sarah, it sounds like you know your Australian affiliate networks.

      How do you actually measure which is the largest Australian Affiliate network? Is it the network with the most affiliates, most campaigns, most traffic or the most revenue??

      There are many other Affiliate networks in Australia that have not been mentioned including Jack Media – DGM and Viva9 do not have a Monopoly in Australia.

      Each affiliate network has their advantages and disadvantages however what most people don’t know is that there is a huge amount of cross over in the publisher base of each network. This means that a ‘smaller’ network is able to deliver just as much volume as the ‘larger’ networks. Each network specializes in certain campaigns whether they be CPL, CPS, CPC etc and this should be taken into account when choosing a network to launch your merchant campaign.

      I agree with Sarah that ‘pricing models are subjective’ as you get what you pay for. Since the ‘larger’ networks have large overheads they have been recently forced to add a monthly retainer onto their prices. In the end it all comes down to the epc that a merchants campaign earns for a publisher and this will dictate the volume of traffic you can receive from any network.

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