• TechCrunch, Wednesday, June 2, 2010 12:59 PM

Ecommerce services provider GSI Commerce has acquired FetchBack, an ad startup that specializes in retargeting. Terms of the deal were not disclosed, but a TechCrunch source puts the cost at roughly $40 million. FetchBack CEO Chad Little will continue to run the business within GSI Commerce. When Web surfers visit e-commerce sites, FetchBack shows them related ads from that retailer -- or even the exact product they viewed -- elsewhere online. The conversion rates are apparently much higher than with standard display ads because they are being shown to people who have already shown an interest in the brand and its products.

Adding a retargeting capability to its marketing services is a no-brainer, since retargeting is basically a way to drive customers back to your shopping site after they've left," TechCrunch says of GSI. "One of the biggest problems e-commerce sites have is shopping cart abandonment." Acquisitions have been key to GSI's growth strategy. Most recently, in late 2009, it agreed to acquire Retail Convergence, the owner of invitation-only, discount luxury shopping site Rue La La and discount shopping site SmartBargains, for as much as $350 million.

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