Adobe Unveils One-Stop Shop For Ad Management And Analytics

by Trefis Team
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Adobe (NASDAQ:ADBE) launched its social media creation and monitoring service, Adobe Social in early September and is now strengthening its social media, ad management and analytics business offering by integrating Adobe AdLens with Adobe SiteCatalyst. Unlike most other ad campaign management tools which focus on a particular platform, the Adobe AdLens is a unified ad management system, which allows users to manage digital marketing efforts across search, display, and social media.

Adobe SiteCatalyst is a web analytics tool that provides marketers real-time web analytics intelligence about digital strategies and marketing initiatives. This makes the combined offering a one-stop shop for digital ad management and analytics. AdLens will also  deliver integration with Adobe AudienceManager for targeted audience segmentation to ensure advertising campaigns reach the right people. [1]

See our complete analysis of Adobe here

Well Targeted Ads Improves ROI

Using SiteCatalyst along with AdLens can lead to ad optimization as real-time ad data can be used as a feedback and users get a complete view of how their digital ads are performing. Previously, the biggest pain point was the manual integration of data feeds from SiteCatalyst to deploy AdLens and the native integration solves this issue leading to quicker deployment of AdLens with minimal effort. Targeting the right customers with the right ads leads to a higher conversion rate and this leads to a higher return on a customers ad spend.

Adobe Granted Facebook Exchange Access

Adobe, a designated Strategic Preferred Marketing Developer (PMD) with Facebook, now has official access to the Facebook Exchange. This will allow AdLens users to buy ad space on Facebook via real-time bidding. The Facebook Exchange integration with AdLens’ real-time bidding infrastructure is a new key update and is likely to become a key selling point as it allows marketers to reach nearly 1 billion people on Facebook, giving brands the opportunity to deliver the most relevant messages to a wide range of consumers. AdLens now also includes AudienceManager and Adobe Dynamic Ad Targeting integration. AudienceManager identifies, and quantifies different audience segments while Adobe Dynamic Ad Targeting  uses this segmentation to deliver highly targeted ads in real time.

AdLens A One Stop Ad Shop

Apart from access to the Facebook Exchange, AdLens accesses all major display sources such as online videos and banners to deliver bid optimized targeted ads. It also offers a “Unified View of Media Campaigns” which analyze which media campaigns are impacting key businesses. Adobe’s analytics division accounts for nearly 10% of its current Trefis price estimate, and we value it under the Omniture division in our analysis. We expect this to be a huge opportunity for Adobe, and as social media ad spending grows, we can expect this division to drive growth.

We currently estimate that revenues from web analytics will grow from its current level of ~$0.5 billion to $1.1 billion by the end of our forecast period. If the ad integration and access to the Facebook exchange drive this up to ~$2 billion by the end of the forecast period, we could see upside of 10% to the current price estimate.

We currently have a $34 Trefis price estimate for Adobe, which is slightly above the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. Adobe AdLens Now Integrated With Adobe SiteCatalyst, www.4-traders.com, Sept 2, 2012 []
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