Five years ago, Adobe made its first move into the digital marketing sphere with its acquisition of digital marketing software and services provider Omniture. While the purchase was widely viewed as an extreme departure from the company's roots as an engineer and retailer of high-end video and photo editing software, with Photoshop being the most notable, half a decade later, the move is paying off for the technology giant.
Over the last four years, the company has enjoyed a compound annual growth rate (CAG) of 106%. The growth was mostly spurred on by the success of the newly absorbed Omniture. Today, the firm's digital marketing division pulls in more than $1 billion in annual revenues and accounts for approximately 20% of Adobe's value. In other words, purchasing Omniture has turned out to be an extremely savvy move.
Growth of eCommerce Drives Craze for Digital Marketing
It goes without saying that Adobe got into the digital marketing game at the perfect time. Now everybody and their cousin is trying to eek out a living by providing web marketing services. The "why" of it is simple: according to statistics from Gartner, businesses around the world are pumping more money into digital marketing than ever before, with the average budget set to climb by 10% this year.
The reason for the increase in budgets is equally simple: 93% of all online experiences still begin with search engines and those experiences quickly turn into a chance to make a sale. In 2014, market analysts estimate that those eCommerce sales will total no less than $1.5 trillion worldwide.
Adobe's Marketing Cloud, a solution that includes tools to optimize SEO, track analytic data, improve social media campaigns, and craft consumer retargeting campaigns, gives businesses looking for their big break in the digital age everything they're looking for. That, in turn, has translated into big numbers for Adobe. If the first five months of 2014 are any indication, the tech firm can look forward to yet another year of increased success.