DirectTrack to Close, Cake to Get All Clients?
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DirectTrack to Close, Cake to Get All Clients?


It seems that DirectTrack is closing its doors. Performance Marketing Insider learned today that they were sending client’s letters informing them that sometime in March the company would be closing down. This comes after months of speculations about it’s future, including an attempt to sell the company that was stopped by Digital River’s board of directors.

 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.

On top of this, we have found a mention in public filings of Accelerize New Media, the company that owns Cake Marketing, that they will be paying Digital River a minimum of $1M in referrals for new clients.

 On November 22, 2013, Accelerize New Media, Inc., or the Company, entered into a Referral Agreement between the Company and Digital River Marketing Solutions, Inc., or the Referrer, pursuant to which the Referrer has agreed to refer certain of its existing and potential clients to the Company in consideration for the payment by the Company to the Referrer of a minimum payment of $1,000,000, payable in four equal quarterly installments on each of March 31, June 30, September 30 and December 31, 2014, plus certain potential additional referral fees.

Written by 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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  • I can’t say I didn’t see this coming. DTs had lots of issues with their systems over the years, with downtime and functionality messes. Good for cake to score their clients, the $1MM will be well spent.

  • Rick Lea says:

    I thank God everyday that we are already on CAKE and feel sorry for anyone that was using Direct Track to begin with. Migrate ASAP! Do not pass GO! Do not collect $200, LOL! The writing has been on the wall for months and losing some of your biggest clients months ago had to take a tremendous toll on their incoming revenues. I used to use their software in the past and it was mos def outdated. The people that migrate to CAKE will like it much better as it is far superior in my eyes :)

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