Thursday, April 11, 2013

And a new social media titan is born


Salesforce finally completed their Buddy Media acquisition. It's been in the works for a while but the price involved - between $689-745 million - is kind of staggering, given that's about what Salesforce earned in its entire first quarter. Social media is the new gold rush!

(If you don't know Buddy Media, they manage social media campaigns for major companies, from strategy to applications. They're not a household name yet, but their clients are.)

I want to disagree with this comment from Marcel LeBrun but I'm not sure I can: "Social media has caused the biggest transformation in marketing since the Mad Men era, causing CMOs to completely re-think their strategies. By bringing together market leaders Radian6 and Buddy Media, we are doubling down on the Salesforce Marketing Cloud to provide CMOs with the ability to manage the entire social marketing lifecycle."

It's probably the Mad Men reference that strikes me as cheesy. We could split hairs as to whether it's the Internet that's been the transformational engine, with social media its chief piston, but yes, the marketing paradigm has been forever changed. Still, the expectations for social media are so ridiculously high at this point, with its ROI often more diffuse than expected. It's hard to say how deals like this will be regarded in five years, as naively misguided optimism or prescient and profitable.

But one thing is for sure - the efforts of such massive capital and talent focused on social media strategy will create a general education for the rest of us and dispel a lot of the current business confusion on how best to leverage it. Instead of scattershot content and platform saturation, businesses will able to draw on  a conventional wisdom that's more strategic, more nuanced and more, well, wise.

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