• by Joe Mandese  @mp_joemandese, November 3, 2009

GSI Interactive, the digital marketing services unit of GSI Commerce that Nick Pahade left Publics to run more than a year ago, today will unveil a new identity for one of its most important brands - its own. Not surprisingly, it is one that focuses on the kind of commerce-driven reputation GSI has come to be known for: TrueAction.

"The name reflects the agency's mission to understand how consumers "truly" purchase and behave in a digital world," explains GSI CEO Michael Rubin, noting that the agency was initially formed in 2006 to expand GSI's capabilities and services to include media, strategy and creative for its clients, which include marketers such as the NHL, the NFL, Toy-R-Us, Timberland, Charlotte Russe, Dick's Sporting Goods, Sports Authority, Calvin Klein, RadioShack, and Kate Spade.

"We intend to be the leading agency focused on driving action for great retail and brands," he adds. "Actions that can grow brands, drive revenue and help our clients build better relationships with their customers and we feel our new positioning is a reflection on that."

That, and TrueAction's growth, helps answer a nagging question on Madison Avenue: Why a high-profile player like Pahade left one of the best-regarded digital media organizations, just as it was poised to catapult forward vis a vis its acquisition of Digitas? As it turns out, Pahade was quietly nurturing his own sleeping digital giant.

Based on revenues, TrueAction ranks as one of the top 10 interactive ad agencies, yet few on Madison Avenue have ever heard of its previous name, GSI Interactive, because its business model has remained below the radar of higher profile digital shops.

"The re-brand was a process set in place for quite a while now," says Rubin, "as the company has aggressively hired, acquired and built out capabilities over the past few years. The summation of this growth is communicated via the TrueAction brand and reflex marketing philosophy."

That philosophy is a little different than some of Madison Avenue's traditional digital players. For one thing, TrueAction's model works for when it works for is clients. Its revenues and profits are tied directly to the profits and revenues derived by its clients, often via the e-commerce platform developed by parent GSI.

TrueAction dubs the approach "Reflex Marketing," which puts "actions around transactions" at the front of the campaign development process. To ensure that, TrueAction has created a "usability lab," that utilizes live focus groups of consumers to help design campaigns guaranteed to generate results. Among the tools used by the lab are the latest "eye-tracking" and remote testing technologies available in the marketplace today.

Given the sagging economy and the erosion of brick-and-mortar retailers, the approach has been a boon for GSI, which has quietly used its momentum to acquire two other performance-focused agencies: Silverlign and Pepperjam.