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Salesforce.com Aims to Make Its Marketing Cloud Competitive

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Sep. 24 2015, Updated 12:05 p.m. ET

Salesforce launches Next Gen Marketing Cloud

Previously in this series, we discussed Salesforce (CRM) Marketing Cloud’s performance in fiscal 2Q16. We also discussed its standing among its peers—Adobe (ADBE), IBM (IBM), HP (HPQ), and Oracle (ORCL)—in the digital marketing cloud space. Salesforce.com’s marketing cloud revenues posted 29% YoY growth in fiscal 2Q16.

In mid-June 2015, Salesforce announced the Next Gen Marketing Cloud, a new iteration of its marketing cloud intended to provide an integrated offering across its distinct sales, customer service, and marketing businesses. Oracle also introduced new features to its own marketing cloud in April 2015.

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Exponential growth in smartphones, wearable devices, connected products, apps, and digital communications is facilitating trillions of customer interactions on a daily basis. The above chart shows the mobile advertising spend by channels. The client’s experience offers a valuable opportunity for companies to learn and compete on the customer experience. This can include a customer’s response to a marketing campaign or an interaction with a salesperson to resolve a customer support case.

Salesforce.com’s Next Generation Marketing Cloud can access more than 100 digital advertising networks and technologies that span the web, social media, mobile devices, applications, and video channels. It allows marketers to develop a focused view of the customer and deliver personalized content on a variety of channels, including e-mail, social, advertising, web, mobile, and apps.

Salesforce cloud offerings gain market share

Commenting on Salesforce’s service cloud growth, Randy Giusto, vice president of market intelligence firm Outsell, noted, “It looks like a natural first choice add-on to Sales Cloud.” He added, “If they can keep up that pace, 2016 should increase their share in the marketing cloud space against Adobe and Eloqua.”

You can consider investing in the Technology Select Sector SPDR ETF (XLK) to gain exposure to Salesforce. XLK invests about 1.07% of its holdings in Salesforce.

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