Marketing Madness

DirectTrack to Be Sold, What Does this Mean?

Performance Markting Insider has learned that a deal to sell one-time leading affiliate marketing company Direct Response Technologies, the company that runs DirectTrack, has been inked and is almost closed. The deal that is supposedly considerably less than it was bought for, only in the several of millions, will be announced next week. According to insiders, the company has secretly been on the block for a while as Digital River has not been happy with the company nor it’s ability to grow in a crowded marketplace.

This seems to be perhaps the nail in the coffin for DirectTrack, as it has faced significant issues in the last few years that brought to light its technology and service problems. In 2010 it suffered a significant and public security breach when all of the data of it’s clients were stolen and put on the black market but a Russian hacker. (As a note, I caught the hacker) Last year the company faced even more problems and a public relations nightmare when it was down for days, leaving most of its clients with no tracking or data reporting.

This perceived failure of the company caused many clients to jump ship to other platforms that took advantage of these problems. Companies started mailing last year all the clients of DirectTrack explaining how their system was “better” and even some companies did public press releases and blog posts bringing up the issues of DirectTrack.

If the sale goes through, what does this mean to DirectTrack? While the buyer has not been announced, and we have a query into their PR department, this could either mean the closing of the company – with the technology being brought under another company’s roof, or that the company could be used for a significantly different purpose than running CPA networks and affiliate programs. The company could also, perhaps to it’s advantage, be relaunched under its own brand and roof, with the new management having more insight than the current.

However, let’s be completely honest here: Cake, LinkTrust, HasOffers and other tracking platforms took advantage of their downtime and other issues to gain significant market-share. Cake Marketing in particular took many of the clients, and others found other systems.  Even if it could rebrand itself, is DirectTrack’s technology even on par with the current generation of tracking systems?

Is this the end of the platform, and the mark of a new era in our industry?

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Pace Lattin

Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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    1. I assume the above person knows that the employees of a company have no idea what is going on at a corporate level, nor even the managers. If their parent company has decided to sell the company, they might not know until the day of. Investment bankers and others have confirmed they were on the block to be sold, and that they have accepted an offer.

    2. Blog is not a joke but you may be joker. Corporates decline sale, M&A, announcement etc until last minute.

    1. Wouldn’t be the first round trip…Shame to know what should have been and wasn’t

  1. Note, the “negative” comments above were most likely from employees of DirectTrack, from cell phones issues in the area of where the company is located. Obviously they have no idea if the company is being sold, employees are not privy to that information.

  2. I wonder; When you find out this is not happening, will you be apologizing to your readers?

  3. Two weeks have gone by and it doesn’t look like they have been sold, or are being sold as you predicted. Would the writer of this blog please explain himself?

  4. Any news on this Pace? – Really want your update here so I can uphold my respect for the quality of your articles/news. Have they been sold, or what?

  5. I’m working on the update and will hopefully publish the prospectus next week. I was told that the board vetoed the sale based on who was buying it (an insider.)

    There is a lot of things going on with their parent company, and I hope to have all the documents next week.

  6. Directtrack must be sold because it’s bullshit
    I buy for their service but they are so BAD technical manager and sale manager are inept.
    MAybe other is not better but directtrack was the leader but they product is so old and so bad that they are dead in few times.
    They made a new version worst that the first.
    Please Directtrack stop your activity and refund client that you stole.
    You are one of the worst american company working in the web, you stay on 90’s

  7. Hi everybody, we work with DT and we have a lot of problems with the tracking of the pixels.
    I need if somebody knows how to implement S2S and image pixel in Right Media because in DT doesn´t give us correct technical instructions how to do it.

    You can contact me in email



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