What is Digital Marketing and what are its key customers?
The Digital Marketing segment of Adobe (ADBE) provides solutions and services for creating, managing, and executing advertising and marketing initiatives. It also offers analytics, social, targeting, media optimization, web experience management, and cross-channel campaign management solutions to digital marketers, advertisers, publishers, merchandisers, web analysts, and C-level executives.
The chart above shows the quarterly growth of the Digital Marketing segment.
Digital Marketing is a key segment for Adobe
Digital Marketing, after Digital Media, is the next big segment of Adobe. It contributes approximately ~30%–35% to the company’s consolidated revenues. Marketing Cloud and LiveCycle & Web Conferencing are the subsegments of the Digital Marketing segment.
Adobe Analytics, Adobe Target, Adobe Social, Adobe Media Optimizer, Adobe Experience Manager, and Adobe Campaign are the chief products under this segment. This segment provides solutions to marketers and advertisers to optimize their digital advertising and marketing campaigns across multiple channels.
Strategic partnerships and agreements pave the way for growth
Adobe has entered into a global reseller agreement with SAP (SAP) that will involve reselling Adobe Marketing Cloud with the SAP HANA platform and the Hybris e-Commerce Suite.
Recently, Adobe also entered into a strategic partnership with Wipro (WIT) and Publicis Groupe to develop a new business unit and a marketing management platform, respectively. These comprehensive partnerships should help Adobe gain more market recognition and expand its presence.
Growth in mobile advertising will drive growth
Adobe’s sharpened focus to sell its offerings to online advertisers, coupled with a “mobile and connected devices” revolution—and especially growing demand for analysis of mobile-based advertising—is expected to boost growth in the digital marketing segment. So Adobe should benefit from this trend.