Adobe Update: Efficient Frontier Acquisition to Help Digital Marketing Efforts

Adobe‘s (NASDAQ:ADBE) stock has fluctuated wildly with the broader market in the last week, finally ending up almost flat. There have been a couple of significant developments related to Adobe, which could be instrumental in driving its revenue growth going forward. Adobe had announced that it would be restructuring its business, and would focus on digital media and digital marketing going forward.

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Going Forward with Digital Marketing Push

It acquired Efficient Frontier, a leading ad buying and optimization platform for Facebook and Google (NASDAQ:GOOG) AdWords, in a bid to become one of the dominant players in digital marketing and analytics. The acquisition 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, as well as a social marketing and analytics platform, enabling brands to engage with their customers on social networks. Adobe also recently acquired Auditude. Together, these acquisitions make Adobe’s digital marketing solution a complete advertising management, optimization and analytics platform for search, display, video and social ads. Even Salesforce.com (NYSE:CRM) recently unveiled the Radian6 Social Marketing Cloud, to capitalize on the rapidly expanding social marketing and advertising space.

Web Analytics software, which includes the Digital Marketing Suite, accounts for nearly 10% of Adobe’s $35 Trefis price estimate, which stands nearly 25% above its current market price.

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