Salesforce.com to acquire Buddy Media for US$689m
By CRM Innovation Editors 05-Jun-2012
Salesforce.com announced that it will acquire social media platform Buddy Media for about US$689 million. The transaction is expected to be completed by end of October.
Buddy Media's social media platform enables users to publish content, place and optimize social advertising and measure the effectiveness of social media marketing programs. With the social media platform, users can determine which content is driving the most engagement, test different strategies and understand which campaigns are delivering the greatest return on investment.
Buddy Media's clients include global brands and advertisers such as Ford, Hewlett Packard, L'Oreal and Mattel, to connect with more than a billion customers on Facebook, Google, LinkedIn, Twitter, and YouTube.
In 2011, Salesforce.com acquired social media monitoring platform Radian6, whose technology captures everyday conversations across Facebook, Twitter, YouTube, LinkedIn, blogs and online communities.
"Social media has caused the biggest transformation in marketing since the Mad Men era, causing chief marketing officers (CMOs) to completely re-think their strategies," said Marcel LeBrun, senior vice president of Salesforce Radian6. "By bringing together Radian6 and Buddy Media, the company is doubling down on the Salesforce Marketing Cloud to provide CMOs with the ability to manage the entire social marketing lifecycle.
In a letter to subscribers, Michael Lazerow, co-founder and CEO, Buddy Media, affirmed that with the merger, brands will now have a one complete solution to tie together all of their social media offerings.
"The idea behind the deal is simple," he also wrote in a blog post. "By combining Buddy Media with the rest of Salesforce.com's products we will be able to deliver the first comprehensive marketing cloud that will allow customers to listen, engage, gain insight, publish, advertise and measure social marketing programs."
Lazerow added that Buddy Media will help Salesforce.com advance its mission to build the marketing cloud. "Salesforce.com is serious about getting into the marketing world. And their offer to acquire Buddy Media reflects that. While it's called an exit, we truly believe this is just the beginning," he said.
For his part, Marc Beniof said that with CMOs surpassing CIOs in spend on technology within the next five years, the marketing cloud will allow Salesforce.com to capitalize on the opportunity.