August 27, 2004, 12:00 AM

Digital Impact expands from e-mail into search engine marketing

In e-mail marketing, like Internet retailing, size does matter and Digital Impact, one of the world’s largest e-mail service providers, is bent on getting bigger by taking on search engine marketing.

In e-mail marketing, like Internet retailing, size does matter and Digital Impact, one of the world’s largest e-mail service providers, is bent on getting bigger by taking on search engine marketing.

Digital Impact, which provides e-mail and marketing support services to web and multi-channel retailers such as Jos. A. Bank Clothiers Inc., Victoria’s Secret, Oskosh B` Gosh and Gap Inc., in July acquired Marketleap, a San Francisco-based Internet marketing firm specializing in search engine marketing services. Under the terms of the agreement, Digital Impact will acquire all of the outstanding equity of Marketleap for $1.5 million in cash and 1.25 million of Digital Impact`s shares and options.

While e-mail marketing remains the primary online medium for customer retention, search engine marketing has rapidly evolved into the fastest growing online customer acquisition channel. The combination of Digital Impact`s strengths in e-mail marketing with Marketleap`s expertise in search engine marketing will offer Internet retailers and others integrated online marketing, says Digital Impact CEO William Park. "This is a strategic acquisition," he says. "It reflects our strong commitment to broadening the digital marketing services and technologies we provide for our Global 2000 clients."

Digital Impact has spent much of 2004 diversifying its e-mail marketing base. In February, Digital Impact formed a business and marketing alliance with Merkle, a provider of online direct marketing solutions such as advanced analytics, data content, and database management. The two companies will help web retailers develop multi-faceted, data-driven marketing campaigns.

 

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