Oracle made its second acquisition within a month to build out its Social Platform, a set of offerings designed to help marketers create stronger ties with customers by engaging users of social networks, measuring sentiment and the effectiveness of campaigns.
The latest piece for Oracle is Collective Intellect, a Boulder, Colo.-based company that promises real-time text analytics on networks such as Twitter and Facebook. Collective Intellect follows Oracle’s purchase of Atlanta-based Vitrue, a cloud-based social marketing platform for managing relationships and analyzing results compared to goals. Both acquisitions are due to be completed by the end of the year. Terms were not disclosed, and Oracle declined an interview request.
Collective Intellect boasts high-profile customers including Pepsi, Hasbro and NBC Universal. In a project for the CNBC cable channel at the CTIA telecommunications show in New Orleans in May, Collective Intellect demonstrated its analytics capabilities by tracking brand rankings for mobile carriers, smartphone makers and tablets during the show’s product releases and service changes. (The analysis showed the Apple and Motorola “drove a lot of the conversation” even though they were not at the show.)
The rise of social media as a use case for analytics for marketers speaks to the demand for companies like Oracle, said Seth Grimes, founder of Alta Plana Corp., an analytics strategy consultancy.
“Social media monitoring has become a must-have capability for every consumer-facing company to support customer-experience, market research, competitive intelligence, product quality, and marketing initiatives,” Grimes said. “Beyond monitoring, competitive organizations measure their (and competitors’) social presence, create engagement strategies as a component of their CRM efforts, and analyze their social data in conjunction with data from operational and transactional systems in order to boost profitability and manage risk.”
In April IBM purchased Vivisimo, adding to its own Enterprise Marketing Management suite unveiled in January.
These major companies are making a play to bring social media analytics in house so their customers can better harness public sentiment, which Grimes said can now be effectively measured and used in real time. Grimes said Oracle bought Collective Intellect to fill a gap in its own offerings. The small company had gained visibility through a mix of technical strength and market building initiatives, he said.
In a letter to customers and partners, Oracle executive vice president of development Thomas Kurian said its acquisition “will enable organizations to build stronger relationships with consumers through intelligent understanding of their social conversations, and to respond with appropriate action and engagement.”
Vitrue is another company with high-profile customers in social media marketing. The company published a case study of a Facebook game run by Intuit’s TurboTax service that measured players’ engagement and Facebook fan acquisition while also benefiting the Toys for Tots charity. Over six weeks, TurboTax acquired approximately 101,000 new fans, according to Vitrue.
Email Staff Writer Ian B. Murphy at email@example.com.