Potential IPO? Hootsuite Acquires Two Businesses
In the space of just two weeks, Hootsuite has announced the acquisition of two businesses: AdEspresso and LiftMetrix. Widely reported, it’s a move that will beef up their offering to customers in terms of paid content marketing and better ROI reporting from social media respectively. It’s thought that these fast acquisitions could also be a sign that Hootsuite is taking steps towards a possible initial public offering.
Canadian-based Hootsuite has said that the acquisition of New York social media analytics platform LiftMetrix will help to fill the void experienced by many marketers when it comes to reporting return on investment (ROI). A common complaint that appears perennially, the impact of social media strategy can be difficult to trace and attribute. A recent survey of CMOs by Duke University found that, despite social media marketing budgets rising by 234% since 2010, only one in five marketers could demonstrate the impact on their bottom line.
Previously a content partner to Hootsuite, LiftMetrix is a social media analytics “solution” that harnesses the wealth of available data to provide paid, owned and earned campaign analysis. This includes conversion tracking, integration with other data tools, and intuitive content recommendations.
AdEspresso, a platform offering tools to craft, A/B test and post Facebook and Instagram advertisements, was a surprise acquisition by Hootsuite earlier in the month. Believed to be part of their strategy to create a rebooted version of Hootsuite Ads, it will work to allow users to augment their posts in real-time. Tapping into a somewhat controversial trend for paid content appearing alongside organic posts on social media platforms to generate revenue, it will aim to generate better visibility to ever more granularly segmented audiences. Leveraging the power of the Italian-designed platform that was originally aimed at helping small businesses to create highly targeted campaigns, it seems to be a natural fit with Hootsuite’s existing offering.
The Vancouver-based Hootsuite has been in existence since 2008. Since then, they’ve built up significant momentum in the field of social media marketing, building up to serving more than 15 million users worldwide today. Riding on the crest of the wave of social media platforms as they have taken steps towards monetisation, Hootsuite has remained a champion for content best practice. Hootsuite also offers a diverse and increasingly sophisticated roster of tools, including analytics and content optimisation. More than 800 of the Fortune 1000 companies use Hootsuite to manage their social media accounts from one integrated dashboard. With a more diversified offering, it is thought that Hootsuite might be about to make their move towards an initial public offering (IPO), further expanding their market strength.