Today I appeared on CNBC’s Power Lunch along with Marissa Mayer of Google to discuss trends in online search as retailers ramp up for the holiday season. One of the key points I wanted to convey is that search is overhyped. What do I mean by that? Search gets credited with driving sales for more than it actually does. This occurs because search is relatively easy to buy and measure. However, search reflects the intent of the consumer, meaning that OTHER channels have helped influence that intent BEFORE the consumer uses Google, or any other search engine for that matter. Retailers have discovered that social media and mobile can be an effective way to have a dialogue and interaction with consumers that influences the intent behind an Internet search. For example:
- 83% of major brands have a Facebook page (see Sears and Gap) and many are using Facebook pages to communicate current and upcoming holiday specials.
- For the first time, brands are using Twitter to disseminate coupons and communicate specials (see Sephora and Toys RUs). Twitter wasn’t on any retailer’s radar screen 12 months ago.
- Brands are using iPhone applications to facilitate easier mobile shopping and gift finding (Walmart and Target are good examples).
As Omniture helps customers better understand how social media, mobile, video and other channels are affecting the purchase cycle, our customers are doing a better job of allocating their marketing budgets and resources. In other words, they are doing a lot more to drive conversion and sales than just giving money to Google.
Which brings me to a topic we didn’t have time to discuss on today’s segment: the game is changing. If you look at online marketing in terms of “innings,” we are currently in the top of the third inning. The first inning was dominated by Yahoo! The second inning went to Google. And while Google will be important in the third inning, I don’t believe it will be dominated by a single vendor. I think this third inning will field multiple significant players, including Facebook, Twitter, the iPhone and, of course, Adobe.
Today marks a very important milestone for Adobe – the close of our acquisition of Omniture. Congratulations to everyone at Adobe and Omniture who helped make this combination a reality.
With the acquisition officially closed, we will now begin work on key product integrations to deliver an unmatched solution for “completing the loop,” from content creation through optimization. We have some exciting plans for delivering greater ROI to publishers, advertisers, designers and developers: integration with the Flash Platform, integration with the Creative Suite tools, and integration of Omniture solutions into our multi-screen strategy to name a few.
At the same time, we will continue to invest in the Omniture business and its success as a standalone offering. Josh James is heading up the new Omniture BU, and I expect the business to continue to thrive with the additional geographic and vertical market capabilities that Adobe brings.
Some people have called the combination of Adobe’s content creation tools and ubiquitous clients with Omniture’s web analytics, measurement and optimization tools the “marriage of art and science.” I would like to thank all our customers and partners for their enthusiasm about this “marriage.” We look forward to providing you solutions that will make the most of the amazing content and applications you are bringing to the Web and across devices.
Note: Visit the Adobe-Omniture acquisition page for more information.[/tp]
As young college students at BYU, my friend and I started a small company with a big goal. We knew we had entered a promising space and set a goal to become a billion dollar company. I’m proud of what Omniture has accomplished so far, but we’re not done yet. Far from it!
We can’t wait to begin the next chapter of our journey by joining together with Adobe to bring even more value to our customers. Omniture has been a strong Adobe partner for years. By joining forces, we will now be able to leverage Adobe’s content creation expertise and the ubiquity of its technologies to help our customers better understand how their investments are paying off. For years our customers have been asking us how to more effectively measure Flash, mobile and video content. This “marriage” with Adobe will make it easier for our customers to do just that. And as a result, our customers will deliver more engaging and relevant experiences, content, and applications – ultimately realizing improved return on investment on all their Web and digital media investments. The possibilities are endless, and that’s what excites me!
As Shantanu mentions in his post, we will now begin work on key product integrations to deliver our customers innovative solutions for both the current and future Web. Together with Adobe, we’re committed to providing the same high level of service Omniture is known for. Look for us to continue to push boundaries in the digital marketing space. I would like to once again thank our customers, partners and employees for their enthusiasm and support. I look forward to the exciting innovations our joint efforts will deliver!