Thursday, October 1, 2009

Non conflict, out-of-sector takeover @ $1.8B

A suave move to create a lateral expansion of software development business model to harness key user behavioral parameters and offer a built in service to the market - Yes, I am referring to Adobe’s acquisition of San Jose and Orem based analytics powerhouse Omniture Inc.

Since the announcement of the acquisition over a fortnight ago, there has been a lot of talk on the merits of the buy-out etched at a premium and what could be the real strategy that Adobe may be hatching to counter its competition like Microsoft in the years to come. Sure! Some of these Qs do get answered in WebAnalytics Weblogs posted here http://blog.webanalyticsdemystified.com/weblog/2009/09/thoughts-on-adobe-omniture.html

Yesterday at a networking forum, I was asked a similar Q by the APAC Managing Director of one of world’s top Internet companies. The Q had more to do with Dell, on how the acquisition could impact Dell who has been a client of Omniture for a couple of years now. My answer was as below.

Historically, Dell flourished on sales through the web medium. Today, they spend millions of dollars in integrating their online marketing vehicles via a number of tracking platforms, tagging, ad serving and the works. Further they spend another fortune to understand and dissect user behavior on Dell.com pages with critical emphasis on their store pages across all country markets. Simply put, I see a convergence of the service delivery from the unified entity to Dell. Thereby elimination some of the redundant, arduous and possibly expensive sync ups between ad delivery to actual conversion and to sharper and refined revenue tracking. The possible ability to assign each dollar earned to every dollar or part spent thereby, along with a more consorted understanding of the user behavior will be the pivot for brand and business managers at Dell to make intelligent marketing strategies in the future.

My unflinching support goes out to the two fabulous partners in the making. They are bound to set new rules to the game of superior ROI measurements.

Let’s watch these two partners closely and hope that we have a new world of better tracking of dollars spent and reduce the drain of ill targeted dollars by most brands.

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