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What will's ExactTarget deal mean for marketing?

4th Jun 2013
Share this content has announced it is to acquire Cloud marketing company ExactTarget for $2.5bn – its biggest acquisition to date, and one that seemingly signals another phase in the development of its Marketing Cloud. 

ExactTarget manages multichannel digital marketing campaigns for more than 6,000 clients – including a roster of big-name companies such as Coca-Cola, Gap and Nike.

With the acquisition, intends to bolster its Marketing Cloud portfolio, which is presently strongly geared towards social media marketing, to create a more holistic marketing proposition. will combine ExactTarget’s traditional marketing capabilities of marketing automation and campaign management with its own social capabilities, many of which were gained from previous acquisitions—listening with Radian6, publishing with Buddy Media, and advertising with

Marc Benioff, chairman and CEO of, explained that the deal will sharpen the company’s focus on the CMO and hopes to become their platform of choice. 

He said: “The CMO is expected to spend more on technology than the CIO by 2017. The addition of ExactTarget makes Salesforce the starting place for every company and puts in the pole position to capture this opportunity.”

Scott Dorsey, ExactTarget chairman, CEO and co-founder, added: “ExactTarget’s mission is to revolutionize how businesses connect with their consumers using data-driven digital marketing across all channels.”

The deal is expected to close by the end of next month.

Year of the Marketing Cloud?

2013 is shaping up to be the year of the Marketing Cloud - in addition to's activity, we've had Oracle talking up its Eloqua-powered version of the Marketing Cloud while the topic dominated proceedings at the recent Adobe Summit in London. Meanwhile, vendors such as Marketo and Infor are also circling the space. 

The catalyst for this has been forecasts by the likes of Gartner that predict that by 2015 consumer technology companies will have switched one-third of their traditional marketing budgets to digital, while CMOs are expected to outspend CIOs on information technology by 2017.'s most recent expansion of its Marketing Cloud platform saw the arrival of ad campaign management platform The solution builds on Marketing Cloud's social ad capabilties, gained through its acquisition of Buddy Media, by providing a self-serve application for agencies, brands, developers, retailers and advertisers to develop, automate and manage their campaigns themselves.

During its launch, the company described the platform as the first to connect social ads with CRM and social media monitoring tools, the latter technology brought about by the purchase of Radian6 in March last year.'s Marketing Cloud offering has therefore had a strong social media bent to date, something that the latest acquisition will likely serve to balance out. 

CRM guru Paul Greenberg has noted that will now have something that is more than just a Marketing Cloud in name only. On ZDNet he wrote: "This move is precisely ... what salesforce needed to do. They now have an excellent email marketing suite, a strong upper-end-of-the-small-and-through-the-middle-of-the-mid-market marketing automation suite (via the Exact Target acquisition of Pardot last year) and, as an added bonus, the social comms tool Co-Tweet, which was one of the underutilized gems owned by Exact Target."

So, potentially a very powerful offering for the marketing sector. And one that could spark further acquisitions in the marketing technology sector according to Forrester's Shar VanBoskirk. 

Commenting on the deal, she blogged: "By making a bold move into not just automation, but digital media, Salesforce will raise pressure on Adobe, IBM, Microsoft, SAP, and other traditional enterprise application providers to make similar moves, raising the valuations of Responsys, Neolane, and Silverpop." 

And she added that this could negatively impact the marketing technology market in the long-term, noting: "We are likely to see further consolidation this year in response, meaning that marketers will have fewer choices overall, and fewer choices in marketing-technology specific providers."

Other potential implications for the marketing sector could include a change in the pricing dynamic that could hamper innovation, said the Forrester expert. "As a large, established vendor, Salesforce will make it easier for marketing departments to convince their IT and procurement peers of adopting ET. If Salesforce chooses to suppress digital media CPM rates, existing ET customers benefit, but Salesforce would make it difficult for (now much) smaller vendors, like Responsys and Silverpop, to compete. In that scenario, all marketers would suffer, as fewer competitors would mean less innovation at exactly the time marketers need more choice."

In the shorter term, VanBoskirk also voiced concerns about the impact of the deal on existing ExactTarget customers. "ET clients told us that service quality waned when ET staffers were "distracted" prepping for the company's IPO in early 2012," she wrote. "We expect an even more pronounced dip now as ET works through terms of the acquisition instead of innovating around its messaging platforms and services."

Replies (4)

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By LinkedIn Group Member
05th Jun 2013 21:45

Comment on this article from the MyCustomer LinkedIn community

The acquisition puts SFDC is the driver's seat with regards to email marketing. 

They are already a dominate player in the CRM space and this will only complement their solution offerings. 

Also, I just got off a call with Infor, and ExactTarget's partnership with SFDC makes a great alternative solution.

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By LinkedIn Group Member
05th Jun 2013 21:46

Comment on this article from the MyCustomer LinkedIn community

This is HUGE news for marketers and the advance of user-friendly marketing automation technology. However, what it doesn't ensure is BETTER marketing, since it is simply an enabler. The critical core thinking, fuled by data insights, strategy, and customer experience design - across multiple channels - is still in the hands of marketing strategists.

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By LinkedIn Group Member
06th Jun 2013 11:56

Comment on this article from the MyCustomer LinkedIn community

It is important to remain agnostic when it comes to marketing tools - they should be the servant rather than the master. 

That said, integration and efficiency of implementation is a key driver of choice - and this will be a significant addition for Salesforce.


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By LinkedIn Group Member
06th Jun 2013 11:57

Comment on this article from the MyCustomer LinkedIn community

As a huge Salesforce fan and a huge ExactTarget fan .. yes .. 

As an industry practitioner it will be another part of the multi-year consolidation process transforming the CRM, customer interaction and customer experience and engagement industry. Marketing Automation is finally being added to enterprise Sales and Service automation platforms to complete the CRM “trifecta”. 

With Salesforce entering the battle with IBM and Oracle the growing number of companies that use their platforms will finally be able to apply the kinds of continuous improvement processes to customer experience and engagement and the marketing, sales and service functions that they applied to manufacturing 20-30 years ago, the supply chain 10-20 years ago and to other functions like HR and accounting over the same time period. 

Whatever the interaction and engagement channel; store, email, digital/online, social, mobile push, companies will now be able to personalize, control and optimize their interactions.

The winner of the industry trend will be the end customer. 

Companies that adopt customer experience and engagement improvement and optimization approaches will distance themselves from the competition. And I suspect Salesforce will experience a little success also. 

All I can say is congrats and the future just got a heck of a lot more exciting.

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