Why is ExactTarget buying a social media platform?
Businesses need a way to integrate social media into their broader marketing initiatives, and eliminate the communication silos that exist across organizations. Combining the power of ExactTarget and CoTweet provides businesses a complete solution to tie together all forms of interactive communications and drive deeper customer engagement online. We were founded on the principle of helping organizations connect with customers through the internet using email. It's only natural, 10 years later, we would expand our platform to help businesses better connect with customers using social media. Instead of ‘bolting on' a social media solution, we're acquiring the best enterprise Twitter platform and combing their DNA with ours to develop break-through solutions. This acquisition creates an ExactTarget business unit based in San Francisco, focused solely on social media development – it will draw on CoTweet's deep expertise in developing innovative social media solutions, as well as its close relationship with Twitter.
What are the terms of the acquisition?
CoTweet will become a business unit of ExactTarget in San Francisco and will lead the company's social media product development. CoTweet Co-founder and Chief Executive Jesse Engle will lead the operation and spearhead ExactTarget's expansion. We will quickly move to invest additional resources in the San Francisco operation. All current CoTweet employees will be retained. Financial details of the acquisition will not be disclosed.
Why did you select CoTweet over other applications?
CoTweet emerged as the platform of choice for three key reasons:
- Results – CoTweet has transformed Twitter into a powerful communication platform that allows brands like Microsoft, Intuit, Ford and Coca-Cola to connect with customers.
- Functionality – Analysts and customers identified CoTweet as the enterprise Twitter platform of choice for its ability to manage multiple Twitter accounts, schedule Tweets in advance, monitor keywords and track conversations and responses through simple case management. Their tagline is “how business does Twitter” and the results they've posted for big brands clearly reinforces their leadership position in the market.
- Culture – CoTweet is an incredible culture fit with ExactTarget. They're a young, fun, passionate company with a bold vision and commitment to delivering brands a powerful way to communicate in authentic two-way conversations with customers. There are strong cultural parallels between both companies. We both share a passion for helping organizations engage customers in productive conversations and drive conversion.
Why is now the right time to enter the market?
We're in a very transparent, authentic world of communication, and businesses are looking for leadership on how to make the most of social media, as it becomes the fastest growing marketing channel. Two-thirds of the Fortune 100 have a presence on Twitter, but the interactions are siloed from their other interactive marketing efforts. Combining the power of ExactTarget and CoTweet provides businesses a complete solution to tie together all forms of interactive communications for deeper customer engagement. As opposed to developing a social media solution ourselves or bolting on some functionality as others have done, we looked to find the best partner with a proven solution that understood social and had the right passion for innovation and serving interactive marketers.
What will become of the CoTweet brand and company?
The CoTweet brand, culture and current base of rock star employees in San Francisco will remain. We'll invest additional resources in the San Francisco operation immediately to provide the resources and horsepower needed to fuel innovation and meet the needs of the world's largest enterprises as they look to monetize and leverage social media to deliver value to their customers.
How will this affect existing CoTweet and ExactTarget customers?
Combing CoTweet's DNA with ExactTarget's will deliver break-through solutions to tie together all forms of interactive communications. Each company will continue to operate independent customer support and sales operations. As we work to integrate the two operations, we'll provide additional levels of support to customers and clients worldwide looking to leverage the power of both applications.
How will the two applications work together?
We share many common customers today and have already begun working with several to understand how they would like to see the products come together.
Why is this a good fit for CoTweet?
ExactTarget reached out to us early in our company's history, and from those first conversations it was clear that they understood fundamentally what was happening in social. As we grew and earned the business of some of the world's top brands, we realized the market was growing at a pace that would be difficult to keep up with organically. We see tremendous opportunity to build on ExactTarget's incredible business and customer relationships to introduce a whole new way of communicating with customers. There are strong cultural parallels between both companies. We both share a passion for helping large organizations connect with customers, engage in productive conversations and drive conversion. Combining the power of ExactTarget and CoTweet provides businesses a complete solution to tie together all forms of interactive communications and drive deeper customer engagement online.
How do you plan to help marketers communicate across all social media – Facebook, LinkedIn, etc.?
The greatest opportunity today exists on Twitter, as two-thirds of all Fortune 100 companies are managing multiple accounts in addition to their interactive efforts on email. Work is underway to extend the same revolutionary functionality CoTweet has developed for Twitter to other social networking platforms.
When will we start to see new products as an outcome of the merger?
We'll immediately begin aggressively expanding the company's presence in San Francisco and expect to introduce some big social media innovations before the end of the year.