Social measurement looks ripe for M&A

Contact: Scott Denne Matt Mullen

The growing amount of funding, matched with the increasing quality and importance of social media measurement, could make that sector the next battleground for marketing software M&A. The past three months have seen companies like Socialbakers, Simply Measured and L2 raise venture rounds of $15-25m, and social media software vendor Lithium Technologies added to its marketing cred with the acquisition of social measurement firm Klout.

The abundance of untamed social media data, and the value of that data, is creating a vital need for better measurement – something that’s lacking in the first generation of social media marketing products, such as Google’s Wildfire. While those tools did little more than counting ‘likes’ and ‘retweets,’ the current generation of software enables marketers to dig deeper into the results of campaigns, with capabilities such as content optimization, visual analysis and competitive industry benchmarks.

It’s the need for not just better social measurement but better measurement across several marketing channels that has driven marketing and advertising software deals lately, including Google’s purchase of Adometry, Oracle’s pickup of BlueKai, and AOL’s $89m reach for Convertro.

We’ve taken a more in-depth look at this sector, including potential acquirers and targets. Subscribers to 451 Research’s Market Insight service can click here for that report.

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