Constant Contact (NASDAQ:CTCT) has acquired yet another startup, MobManager, a daily deal management solution for small businesses. [1] MobManager enables businesses to create and manage their own daily deal offerings using a simple web-based interface. It offers additional features like advanced reporting, analytics and social media integration. With this acquisition, Constant Contact aims to enter the very crowded daily deal space where it will compete against juggernauts like Groupon (NASDAQ:GRPN) and LivingSocial, which is backed by Amazon (NASDAQ:AMZN).
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Constant Contact Striving to Offer a Complete Marketing Solution to Businesses
Constant Contact started out as an email marketing solution offering event marketing and online survey tools. Eventually, it entered the social media marketing space with the launch of Social Campaigns, which enables businesses to run social marketing campaigns on Facebook, Twitter and LinkedIn.
It recently acquired CardStar, a mobile marketing startup, that facilitates businesses to offer loyalty cards and mobile coupons to attract and retain customers. Now, with the acquisition of MobManager, it will also provide a daily deal management solution for small businesses. Daily deals is becoming an increasingly popular customer acquisition tool and if Constant Contact is able to capture even a small amount of market share of this booming market, it would mean a significant boost to its revenues and stock price.
The daily deals solution by MobManager will be part of Constant Contact’s content marketing business, which accounts for more than 80% of its $27 Trefis price estimate. Our price estimate stands nearly 10% below current market price.
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