3rd Pick in the 2013 Marketing Cloud Acquisition Draft Is …
Tick-tock. Tick-tock. Gosh, it is almost getting boring around here waiting to see where the next selection will go.
Salesforce grabbing up ExactTarget with the first selection was the first big surprise. Not so much the ExactTarget side, because there had been rumors for some time that ET was on the market. The surprise was more about Salesforce jumping into the fray. Oh, they definitely needed this acquisition or one like it. For all the great tools that Salesforce has for gathering, organizing, prioritizing and listening to your contacts and gathering data, what they have never had is a robust and efficient way to segment and actually reach those valuable contacts. ExactTarget gives them that one big missing capability through the ET campaign management platform, along with many fresh concepts and ideas in social opportunities.
The other gem in what Salesforce picked up in this acquisition, and what likely drove the total price of ExactTarget so high, is ET's recent purchase of Pardot to strengthen their own marketing automation growth plans. Even the Salesforce CEO gushed about the inclusion of Pardot in his Twitter post around the purchase, thrilled that the transaction included: "The fastest-growing marketing automation and lead nurturing company for Salesforce users."
But that price. Wow—$2.5 billion. Worth it? Yes, most likely, in the long term. But in the short term, it is a real drain on the cash flow for Salesforce; probably severely limiting other expansion plans or possibilities. It seems painful enough that now, just a month later, they have had to take out a $300 million loan to carry the cost. I have to believe that Salesforce is certain that the long-term cross-sell and integration possibilities for both companies will make it all worthwhile.
Then a few weeks later, an even bigger shock when Adobe slips in to scoop up Neolane. Another big matchup that fits the overall strategy needs of both organizations. While I hadn't heard of any open shopping of Neolane, it makes sense that they would be eventually in the crosshairs of a larger enterprise. A strong set of campaign management tools, a top-line roster of satisfied clients, a steady string of industry honors and awards during the last four or five years, and continuous innovation of the product line toward achieving "visionary" ranking across three separate areas in Gartner's "Magic Quadrant" reports and named a "leader" in Forrester's "Wave" report. There was a whole lot of upside potential waiting there for the right suitor. Like Salesforce just a little earlier and Oracle in 2012, before the Eloqua acquisition, Adobe was the big man on campus in its primary business, but has stumbled about in efforts to build a suite of contact management and execution tools that would translate to the market segments outside of its solid base of agency clients drawn in by its creative leadership. Neolane will certainly be able do that and bring powerful new strategic offerings to the Adobe table.
Vince Pickett has 30 years of direct marketing data management expertise across multiple channels and industry verticals, utilizing a wide variety of management and analytic tools for both B-to-B and B-to-C success. Pickett has seen award-winning excellence and the good, the bad and the ugliest of practices used by clients where he and his teams have built or come to the rescue of client organizations. In his career with several service provider companies or as an independent consultant, Pickett advocates for clients to maintain the highest standards of complete and accurate information for every customer, prospect or lead being maintained within the marketing database. Above all else, clean data provides every marketer with the foundation needed to segment accurately for the most efficient programs that provide the greatest ROI.
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