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Pepperjam to benefit from GSI's market-leading position

03
Sep '09

GSI Commerce Inc announced it has acquired certain assets of the Pepperjam affiliate marketing network and the Pepperjam full-service, interactive marketing agency which specializes in search. The acquisition will expand the breadth and depth of GSI's interactive marketing services capabilities and its reach into existing and new vertical markets. Pepperjam will benefit from GSI's scale and market-leading position in e-commerce and marketing services. Terms of the deal were not disclosed.

“The acquisition of Pepperjam is a strategic extension of our marketing services business that we believe will enhance growth opportunities for both GSI and our clients,” said Michael G. Rubin, chairman, president and CEO of GSI. “Affiliate marketing is a powerful interactive marketing tool. Last year, our affiliate marketing channel generated more than $100 million in sales for our clients. By owning our own affiliate network, we believe we can more rapidly drive innovation and service enhancements to our clients while also expanding our marketing services offering to a broader universe of prospective clients. We expect the affiliate business to represent an important opportunity over time.”

According to independent firm Forrester Research Inc.'s April 2009 report, “Online Marketing Benchmarks For Internet Retailers,” online retailers spend 20 percent of their online advertising budgets on affiliate marketing and online marketplaces.

“GSI's entrance into the affiliate network business could provide online retailers with a powerful combination of integrated e-commerce and marketing services,” said Bob O'Keefe, senior director of NFL Direct. “We're excited about the acquisition and we believe that GSI will help grow our overall affiliate business by taking the Pepperjam network to the next level.”

Pepperjam, located in Wilkes-Barre, Pa., has 48 employees and will operate as a separate business unit of gsi interactivesm, reporting to Nick Pahade, president of gsi interactive.

The Pepperjam network offers many innovative affiliate marketing features that represent key points of differentiation compared to other alternatives, including:

• The Pepperjam Network Transparency System provides advertisers with the disclosure of important information, including reliable contact information, promotional methods, Web site(s), and marketing potential. The system allows advertisers to have more confidence in and more control over the affiliates within their respective affiliate program and also empowers affiliates to build stronger, more profitable advertiser relationships.

• Pepperjam's premier product feed and store builder technology features products from hundreds of top Internet retailers and allows affiliates to build dynamic e-commerce storefronts in less than 30 seconds.

• The ability for affiliates and advertisers to communicate with each other in real-time through a service called Pepperjam Chat.

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