Adobe Acquires Efficient Frontier, Aims to Become a Leader in Digital Marketing

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Adobe (NASDAQ:ADBE), one of the most popular creative software maker, recently announced its intentions to focus on digital media and digital marketing software and services, as part of its restructuring plan to drive revenue growth in the coming years. It has now acquired Efficient Frontier, a leading ad buying and optimization platform for Facebook and Google (NASDAQ:GOOG) AdWords. [1] With its recent moves, and acquisitions like Efficient Frontier and Auditude, Adobe hopes to become one of the dominant players in digital marketing and analytics.

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Web Analytics software, which includes the Digital Marketing Suite, accounts for nearly 10% of Adobe’s $35 Trefis price estimate, which stands nearly 30% above its current market price.

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Adobe Aims to Dominate the Digital Marketing Space with Acquisitions Like Efficient Frontier and Auditude

Acquiring Efficient Frontier will add multi-channel ad campaign forecasting, execution and optimization capabilities to Adobe’s existing Digital Marketing offering. It also brings advanced social ad buying and optimization features for Facebook, which can be integrated with Adobe’s current offering. It also brings a social marketing and analytics platform, allowing brands to engage with their customers on social networks. Adobe recently acquired Auditude, which specializes in video advertising. It also integrated digital marketing technology from SEO (search engine platform) provider BrightEdge, to support organic search engine marketing campaigns.

Brad Rencher, SVP and GM of Adobe’s Digital Marketing Business said:

With the explosion in global Internet advertising, our customers need to know where, when and how to spend their digital marketing dollars to get the greatest return. The addition of Efficient Frontier will give our Digital Marketing Suite customers a leading platform for turning ad spend into business impact.

The Digital Marketing Suite now offers a complete advertising management, optimization and analytics platform for search, display, video and social ads. Social marketing and advertising is a growing space. Even Salesforce.com (NYSE:CRM) recently unveiled the Radian6 Social Marketing Cloud, to capitalize on this rapidly expanding market.

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Notes:
  1. Adobe to Acquire Efficient Frontier, Leading Digital Ad Buying and Optimization Platform, Press Release []