Online ad-delivery agency DoubleClick has closed its acquisition of Performics, a search marketing and SEO firm with a stable of large corporate clients. With this merger, DoubleClick in a single swoop becomes a gigantic player in the SEM field, which is projected to yield revenues of $2.1 billion in 2004. (DoubleClick paid between 58-million and 65-million dollars for Performics.) Performics creates and implements search engine marketing, affiliate marketing, and lead-generation programs for companies with serious ad budgets. One of Google's case study pages describes Performics as an SEM force before AdWords was introduced, and lists Performics clients including Spiegel, Kohl's, Road Runner Sports, and J. Jill.

DoubleClick's headfirst dive into search marketing is more bad news for smallish SEM companies serving a specialized niche. As SEM becomes increasingly mainstream as a recognized and essential promotional channel, specialty agencies and consultant shops are facing monstrous competition from the likes of DoubleClick and Google itself. DoubleClick clients (such as FedEx, MTV, and others) now can be offered a suite of online ad services that doesn't stop at the doorway of search engines. Including pay-per-click expertise into its platform of delivery and exposure options enormously increases DoubleClick's value and clout.