Constant Contact (NASDAQ:CTCT) is a major player in the online marketing business. It generates almost all of its revenues from content marketing, which is comprised of email marketing, event marketing, online survey tools as well as social media marketing. It competes primarily with Eventbrite, iContact and Surveymonkey in that space as well as the Radian6 Social Marketing Cloud by Salesforce.com (NASDAQ:CRM).
Here are some of the developments related to Constant Contact in the last couple of weeks, which could impact its stock going forward.
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Social Media Marketing to Drive Revenue Growth
While it derives a major portion of its revenue from email marketing and online surveys, it has been working on a social marketing offering since quite some time. It recently announced the new Social Campaigns product, which enables small businesses to run social media marketing campaigns on networks like Facebook, Twitter and LinkedIn. The new service allows users to create landing pages on Facebook, and then promote it on multiple social networks. It also offers a wide range of analytics and metrics so that customers can easily measure the impact of their social marketing campaign and improve it further.
A recent survey also indicated that small businesses are now warming up to the idea of social media marketing, and are increasingly using social networking sites like Twitter, Facebook and LinkedIn to market their products online.
It also reported around 20% revenue growth in the last quarter, and also opened a new office in the U.K. to support its customer base there. It will also target the U.K.-based small businesses to expand its customer base.
We currently have a $25 Trefis price estimate for Constant Contact. Content Marketing accounts for almost all of its revenue.
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