Home  › Social › Social Media
buddy-media-in-austin-airport

Salesforce's Big Price Tag for Buddy Media Emboldens Social

  |  June 4, 2012   |  Comments

Vitrue was also considered as an acquisition target.

buddy-media-in-austin-airportThe biggest winner so far in the Facebook marketing vendor ecosystem was declared today when Salesforce.com bought Buddy Media for $689 million. Maybe those Buddy Media airport ads (pictured) weren't so wacky after all, as they seemed to have led to some sales.

Salesforce.com CEO Marc Benioff said he met with 10 social media vendors before beginning negotiations with Buddy Media. Benioff said his decision was significantly based on Buddy Media having "the largest transactions" from clients like Ford and WPP.

One vendor under consideration, the CEO mentioned, was Vitrue, which was recently bought by Oracle for $300 million. Other major players that were probably reviewed by Salesforce.com include Wildfire, Syncapse, Friend2Friend, Offerpop, and FanBridge. And for further price tag comparisons, Salesforce.com last year purchased social listening platform Radian6 for $326 million - less than half of what Buddy Media went for.

"At the end of the day," Benioff said, "[Buddy Media] had the best product…We are going to market and sell the heck out of it."

Marketers who already use Salesforce will now be able to incorporate Facebook efforts into their digital workflows via the Buddy Media system. At the same time, it's probably too early to say what Buddy Media's sale to Salesforce.com means to the evolution of social media-enhanced CRM. For instance, when ClickZ asked what brand clients should now anticipate, Scott Monty, the oft-quotable social media director for Buddy Media customer Ford, wouldn't bite.

"We're not really prepared to provide an assessment," Monty said.

The Buddy Media purchase is seen by some as the next step to Salesforce.com's acquisition of Radian6. John Donahue, director of business strategy and consumer engagement at content and technology firm Socialistic, said it seems that Salesforce.com is "assembling a war chest of technology to go after Fortune 1000 brands. The question remains on how Salesforce will work to adapt their consulting model to work closer with marketers as all of these technologies only work well when they are implemented correctly organizationally."

Meanwhile, for brands that want social to become more of a centerpiece in their CRM, getting Salesforce.com more heavily involved in the scene can likely be interpreted as a positive sign. Few tech companies have performed as industriously in the marketplace, garnering the confidence of Wall Street investors to the tune of an 80 percent stock price increase over the last four years in an otherwise bad economy.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...