High margins and customer stickiness in the marketing cloud space is luring leading tech players
The complexity of reaching customers in today’s digital world is increasing day by day. As a result, companies and brands are willing to dish out funds on technology that automates their marketing across different channels, engages customers on social platforms, and uses analytics to be more efficient in their targeting. To meet these goals, companies can either buy a platform for each of these issues or strike a deal with a vendor that can give them all the solutions they require for their digital marketing strategy.
There’s plenty of growth possibilities in being a single provider for all digital marketing solutions. The reason is this space offers high margins as well as customer stickiness. By “customer stickiness,” we are referring to customers that are likely to stick with one platform once they have grown dependent on it. This explains why all the leading technology players, IBM (IBM), Salesforce.com (CRM), Adobe (ADBE), Oracle (ORCL), and HP, are vying for a share of the big marketing cloud pie.
The above chart shows the different marketing solutions that each company offers in its digital marketing clouds, as of early 2014. Among all of them, Adobe started the earliest and is rapidly moving ahead in the integration process. To gain diversified exposure to Oracle, you can invest in the iShares US Technology ETF (IYW). IYW invests about 3.92% of its holdings in Oracle.
Adobe is leading the marketing cloud space
According to a VB Insight report released in March 2015, Adobe is leading the marketing cloud space, as the above presentation shows. Other leading players in this space include Oracle, Marketo, and Salesforce.com.
The report stated that Salesforce has a good combination of ability and vision to execute in marketing clouds. Marketo is focusing on catering to the specific requirements of marketers in the enterprise space. The report cited Oracle as the company with a large scope of marketing cloud features as well as an ability to extend the reach of its marketing cloud into sales, service, and support departments of the organization.
Oracle hopes to strengthen its presence in the cloud space. To build its marketing cloud, it has made several acquisitions, including BlueKai, Eloqua, and Responsys. The addition of several significant features, as mentioned in this series, indicates the company’s focus on emerging as an intense player in the marketing cloud space.