Zeta Interactive sets sights on marketing cloud giants with ebay CRM acquisition

Vendor expands its customer lifecycle marketing and management capabilities by acquiring the CRM components of ebay Enterprises

Zeta Interactive, the US-based email marketing player founded by ex-Apple CEO, John Sculley, is looking to take on marketing cloud giants such as Apple, Oracle and Salesforce after picking up the customer relationship management division of eBay Enterprise.

The deal is part of a wider US$925 million sale of eBay’s entire marketing solutions division (Enterprise), first announced in July and completed in November, to a private equity consortium led by Permira Funds and Banneker Partners. Marketing capabilities under the Enterprise umbrella include affiliate network, display advertising, search marketing, social, data and analytics and agency services.

The eBay Enterprise sell-off also sees its ecommerce software offering, Magento, spun out into a standalone company backed by equity investors, Permira and Sterling Capital. eBay acquired the Magento platform in 2011, the same year it also picked up GSI Commerce for approximately $2.4bn, and established the Enterprise solutions business.

Zeta’s CRM acquisition is being supported by its recently announced US$125 million fundraising round in July, and will further the vendor’s strategy to extend and enhance its customer lifecycle marketing platform through organic moves and targeted acquisitions.

“Combining the power of eBay Enterprise’s CRM businesses with Zeta's highly rated people-based marketing platform is a game changer in the marketplace,” said Zeta CEO and co-founder, David A. Steinberg, in a statement.

eBay Enterprise’s CRM division encompasses several data-driven marketing stack components, an enterprise-grade email service platform, data management product and an automated attribution solution. All of these will be now integrated into Zeta’s platform.

Under the deal, Zeta retains all CRM division offices in the US, UK and Singapore, and also picks up eBay Enterprise’s former head of CRM, Regina Gray, as its new senior vice-president.

“Together, we have an unmatched set of assets and capabilities to help leading brands improve their return on marketing spend across the entire customer journey, both cross-channel and cross-device,” Steinberg claimed.

Sculley said the deal reflected the “tremendous” momentum already behind the Zeta business in the marketplace.

“David and his team have done an outstanding job of acquiring, integrating and scaling businesses that are more valuable in the Zeta platform than for a different owner,” he commented. “We are delighted to add the talented team and exceptional client base of the CRM division to Zeta.”

Sculley also told Forbes the deal took it one step closer to realising its vision as the largest customer lifecycle management platform and opened up the ability to tackle larger clients.

Zeta Interactive was launched in 2007 by Steinberg and Sculley and provides multi-channel campaign and database management, audience targeting and automated landing page tools based on big data and analytics. The company has 600 employees worldwide with offices in the US, UK and India and reported an annual revenue of US$168m in 2014. Customers include Ford, Chase, British Airways, Ikea, Hilton Worldwide, Sony Pictures and Estee Lauder.

According to Gartner’s most recent Magic Quadrant for Multichannel Campaign Management, the Zeta platform enables marketers to query, segment and use information to build customer relationships, and to measure and optimise continuously. It also noted a number of new capabilities coming into the platform including open APIs, SMS integration into campaign workflows, an expansion of real-time Web personalisation and improved data modelling.

However, the research group said Zeta will need to iron out some complexities within the platform, as well as differentiate itself better in a crowded market by providing specialised support and managed services that the larger vendors, such as IBM, Salesforce and Oracle, cannot scale to offer.

More on how brands are tackling customer lifecycle marketing:

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why efficiency and effectiveness are opposing forces in a marketing tug of war

I’ve been a long-time fan of renowned effectiveness experts, Peter Field and Les Binet, and their work. But while their approach is clearly important, the marketing leader’s challenge to deliver effectiveness more often lies in organisational structure. I see the bigger question being whether a marketing chief has a seat at the executive table, and the ear and respect of the CEO and company board.

Nickie Scriven

CEO, Zenith

Augmented Reality: What’s behind the marketing industry’s failure of imagination?

Every flagship smartphone in Australia includes hardware and software purpose-built for AR. A huge audience is ready and waiting. We have an opportunity to craft extraordinary, innovative work. But to get there, we need to push our creative thinking a little harder, writes Gil Fewster.

Gil Fewster

Creative technologist, The Royals

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

Why it's important for me to know that? I don't get it, sorry.

James Fogle

7 things you need to know about Facebook's mood experiment

Read more

Info graphic have proven to be very useful to create brand awareness and drive traffic. Thanks for sharing these Information.Graphic Desi...

Govind Dadhich

Image intelligence:10 must-see infographics for marketers

Read more

Best web hosting packages Vancouver WA understands that only technical support and domain associated email address can bring huge leads ...

Radiata Solutions

6 Ways to ramp up Social Media to Your Web Design

Read more

I had the same vision about change from CX terminology to HX. Even with almost the same title: 'Forget customer experience...' https://ww...

Ekaterina Khramkova

Forget customer experience, human experience is marketing's next frontier

Read more

Thank you, so do I.

David Freeman

Sustainability of message: H2coco founder's commitment to consumers

Read more

Latest Podcast

More podcasts

Sign in