Adobe Takes Aim at Video Advertising Market with Auditude Acquisition
Adobe (NASDAQ:ADBE) announced that it has acquired Auditude, a video ad management and monetization company. [1] Auditude allows online content publishers to monetize their content using its advertising server platform. It enables publishers to create video ads and monetize their content. With this acquisition, Adobe now offers services across the spectrum of web video – from authoring and publishing using the Creative Suite, to analytics and optimization using SiteCatalyst and other products from the Omniture acquisition, to monetization using Auditude’s offering. Adobe competes with Apple (NASDAQ:AAPL), Quark and Corel in creative software, and Google (NASDAQ:GOOG) Analytics in web analytics.
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We have a $35 Trefis price estimate for Adobe, which stands nearly 20% above its current market price. Creative Software accounts for around half its Trefis price estimate, while Web Analytics software accounts for less than 10%.
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With Auditude, Adobe Can Now Offer a Complete Solution to Video Publishers
Publishers can now create their content using Adobe’s Creative suite, publish it using the Flash Media Server and monetize it using Auditude’s video ad platform. With the online video advertising market set to explode in the coming years, Adobe has a good chance of capturing a significant market share in this space.
Adobe also plans to integrate Auditude with its Digital Marketing suite. We expect that it will provide increased cross selling opportunities and boost revenues from the its Web Analytics software division (Omniture), which accounts for nearly 9% of its Trefis price estimate. We expect Adobe’s web analytics revenue to reach $1 billion by the end of the forecast period.
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