In October 2016, Krux announced that Salesforce has agreed to acquire the six-year-old data management platform provider, with the acquisition closing on November 1.
What’s in it for Salesforce? Acquiring DMP provider Krux enables Salesforce to better compete with its big competitors in the marketing cloud space, including Adobe and Oracle. The deal also gives Salesforce access to “the data needed for large-scale audience segmentation and targeting for ads,” reports MarketingLand.
Likewise, AdExchanger notes that Adobe Marketing Cloud and Salesforce currently have different capabilities but “with Krux’s legacy as a publisher DMP, Salesforce could slowly start encroaching on Adobe’s content turf.”
So what does this mean for enterprise marketers – the people whom Salesforce hopes to attract and better serve with its newly acquired DMP capabilities?
Four Benefits Salesforce’s Purchase of Krux Could Create for Marketers
Our experts identified several ways that this deal, which will change the marketing technology landscape, could help marketers.
1. The opportunity to build campaigns and activate them beyond email and web.
Marketers can now build and activate campaigns through to advertising platforms.
Additionally, Salesforce’s newly enhanced marketing cloud will give marketers the ability to push audience segments to ad tech for media buys/optimization and personalization.
2. Fewer platforms mean fewer integrations required for marketers.
The goal for all marketers is to have their technology stack and processes work as though they are part of one unified, seamless process and system. Tightly integrated technology overcomes one obstacle to data-driven marketing success.
3. Data can be more easily accessed and digested.
Tighter integration also means that the data can be more easily accessed and digested. Easier access to data, in turn, empowers more analytics about audiences and customers.
4. AI can help marketers make smarter decisions for targeting and personalization.
Salesforce’s new artificial intelligence (AI) layer Einstein is embedded throughout its marketing cloud. It’s also embedded within Salesforce’s sales, services and other clouds.
Einstein requires huge amounts of data to be useful. By buying Krux, now “Salesforce has its own enormous repository of online consumer behavior data with which to train Einstein,” Forrester analyst Brandon Purcell told MarketingLand.
— Krux (@KruxDigital) October 6, 2016
The integration of billions of events into Einstein could enable marketers to make smarter decisions for targeting and personalization.
Why Any Benefits for Marketers Depend on Salesforce Fully Integrating Krux’s Capabilities
Tighter integration means fewer custom integrations and ease of data access. These benefits will only materialize, however, IF Salesforce truly integrates Krux’s capabilities.
As we’ve previously observed on the convergence of marketing clouds, DMPs and data:
[M]arketing clouds need to do a better job of integrating their past acquisitions in more than just name. Many have not done a great job integrating the functionality and capabilities of the companies they have bought into their platforms.
Oftentimes, acquired technologies aren’t truly and fully integrated into the “cloud” provider platforms. That creates more custom work than vendor sales’ claims lead companies to expect. This is an area that Infintive will continue to observe and evaluate in order to help our clients make informed decisions.
The Impact Krux’s Acquisition by Salesforce Could Have on the Industry
Any time a larger corporation acquires a smaller one has the potential to lessen competition and reduce innovation. There are, however several ways that this deal could be good for the industry.
First, this isn’t just a growth play for marketing clouds. The needs of the market to simplify marketing and advertising drives consolidation.
Secondly, good valuation for ad tech underscores the importance and benefits of the convergence of martech and adtech, which is good for the industry. Sources put the deal’s estimated value at $700 million.
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