The latest Adobe acquisition of Demdex will be included in Adobe Online Marketing Suite, powered by Omniture, with focus on customer experience management, online audience optimization and ad spending.

What the Deal is About

Taking yet another step into the holyland of Customer Experience Management, Adobe is after the global onlineadvertising spend market. For advertiser and publishers to besuccessful, they ought to know their online audiences. They ought toknow what a specific audience is interested in to sell more efficiently.

Demdex-- as part of the Adobe Online Marketing Suite + Omniture power machine --will add audience optimization tools. Adobe defines audienceoptimization “as intelligent collection, compilation and management ofanonymous audience data.”
The solution is targeted at advertisers andpublishers, as they comprise the biggest chunk of Omniture’s customerslooking to optimize online ads buyingand selling practices.

Advertisingspend optimization for online advertisers and the ability to leverageaudience data to increase revenue for publishers are two primary driversbehind the combined offer.

Learning Opportunities

Who is Demdex

One of theearly boomers in the SaaS audience management market, Demex has thisconcept of a “data bank” of audiences. It contains data collected fromvarious web properties and online ad campaigns, or the one coming fromthird-party data sellers. These sources are then used to better targetonline advertising at specific audiences.

New York-based Demdexwas founded in 2008. Its investors include First Round Capital andGenacast Ventures, Comcast’s seed venture arm. In 2008, the companyseeded US$ 1.5 million.

Aftercoming out of stealth mode in June 2009, in 2010, they received anotherUS$ 6 million in Series A funding, led by new investor Shasta Ventures.

Demdexhas been readying for an acquisition for some time now: raising money and adding industry heavyweights to the uppermanagement echelon. Adobe seems to be making all the right acquisitions, Day Software included.