Adobe has announced that they are buying Neolane, a French company that specializes in managing digital marketing campaigns. They are a successful company and their expertise spans multiple platforms. Adobe has agreed to pay $600 million for this purchase. According to Adobe, this move has been made to support the Adobe Marketing Cloud.
Adobe Marketing Cloud is a set of tools encompassing analytics, social, advertising, targeting, and web experience management solutions.
Neolane is a huge company that has worked together with so many very big players in the world, including Samsung, Photobox, Nespresso and Canon. They are an international company, although French in origin. The technology they offer is completely unique, which goes a long way towards explaining why Adobe has decided to acquire this company.
Neolane provides the only conversational marketing technology that empowers organisations to build and sustain one-to-one lifetime dialogues, dramatically increasing revenue and marketing efficiency. With best-in-class email and inbound-outbound channel fusion capabilities, marketers achieve results in record time. Born digital, Neolane has a track record of enabling its customers to adapt to new communication challenges and exploit opportunities more quickly than their competition.
The Development of Adobe
Through this acquisition, Adobe is changing the face of their own company as well. Essentially, it means that Adobe will no longer focus solely on digital marketing, but that they are now also moving towards broader marketing, including call centers, direct mail and other offline channels.
For instance, a travel firm planning a summer getaway marketing campaign wants to start sending out direct mail in February, follow up by email, perhaps create a special website all as part of one campaign. “I don’t want to walk into a CMO’s office and just talk about digital marketing,” says Mellor. “They don’t think of it that way. People want to coordinate all this stuff together.
Neolane isn’t the first acquisition in Adobe’s portfolio either. They have been moving towards a significant expansion for several years now. Once upon a time, Adobe was very clear in what they offer, with most people knowing them for their Acrobat Reader and for Photoshop. Now, however, Adobe seems to be going into a far wider direction.
Neolane will become a sixth solution in the Adobe Marketing Cloud, complementing the existing Analytics, Target, Social, Experience Manager and Media Optimizer offerings. This creates an unparalleled platform for delivering rich, personalized experiences to consumers across channels and devices, and giving a unified view of the customer to marketers. The Adobe Marketing Cloud enables marketers to drive what once were incredibly complex campaigns – delivering marketing ROI that is highly measureable.
Essentially, Adobe is trying to create real organic innovation. Their acquisitions are designed to help them create solutions for digital marketeers across the globe. In 2009, they purchased Omniture. Then, one year later, they took on Day Software, followed by Demdex in 2011, as well as Auditude the same year. Last year, they purchased Efficient Frontier.
The Financial Aspect
Adobe’s finances have been changing slightly, which was noted in their share price as well. It currently stands on $45.94, which is a rise of just one penny. Their financial status has changed overall as well.
Last week, Adobe reported that its fiscal second-quarter earnings fell 66% on higher expenses as the company accelerated its transition to online subscription services and away from periodic releases of licensed and packaged software.
However, none of this means that Adobe is experiencing financial difficulties. This is proven by the fact that they are able to spend $600 million on the acquisition of Neolane. Instead, they seem to be spending money to make more money.