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Adobe’s Marketing Cloud Should Drive Growth in Digital Marketing

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Adobe’s Marketing Cloud continues to be a leader

In the prior part of this series, we looked at Adobe’s (ADBE) Digital Marketing segment performance in its recently announced fiscal 4Q15 results. We also looked at its position in this space. Adobe holds a leadership position in the digital marketing space. In fiscal 4Q15, Adobe was heralded once again by Gartner and Forrester as a player that enjoys a commanding position in the marketing cloud space.

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In fiscal 4Q15, Adobe’s Marketing Cloud revenues grew 7.5% to $352 million. For fiscal 2015, its Marketing Cloud revenues grew to $1.4 billion and achieved an annual bookings growth goal of approximately 30%. However, as the above chart shows, this growth rate was lower compared to earlier rates. Adobe’s deals with Home Depot (HD), Etihad Airways, McDonald’s (MCD), Comcast (CMCSA), and Kaiser helped it achieve this growth.

The company also stated that it manages ~40 trillion customer data transactions through its Marketing Cloud every year. Marketing Cloud measures 80% of all online transactions from the top 100 US retailers. Adobe’s Digital Index recent holiday shopping report stated that online shopping generated $11 billion in revenues from Black Friday to Cyber Monday, and 33% of this revenue came from mobile devices.

Adobe is taking the partnership route to expand its digital marketing offerings

In December 2015, Adobe announced a partnership with Accenture (ACN). Both companies will create and deliver digital marketing solutions for healthcare, life science, and financial services organizations in North America and Europe (EFA).

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