What: San Francisco data management platform Krux is being acquired by Salesforce in a deal valued around US$700 million in cash and stock. Why it matters: Krux will allow Salesforce to extend its audience segmentation and targeting for brands. Krux’s clients include Kellogg’s, ConAgra, Time Warner and JetBlue.
San Francisco-based company Krux has entered into a definitive agreement to be acquired by Salesforce for the estimaded price of US$700 million in cash and stock, according to Forbes. Salesforce will pay US$340 million in cash and additional stock options.
The agreement brings together Salesforce’s CRM platform with Krux’s category-data management platform (DMP), the Intelligent Marketing Hub™.
Krux will work closely with the Salesforce team to create integrations.Krux will extend the Salesforce Marketing Cloud’s audience segmentation and targeting capabilities to power consumer marketing with even more precision, at scale. In addition, Krux will feed Salesforce Einstein with billions of new signals, enabling companies to be even smarter about their customers. Krux and Salesforce together will empower every company to deliver more relevant and valuable consumer experiences across every touchpoint.
Founded in 2010, Krux had raised more than US$48 million from outside investors across several funding rounds, including from Accel Partners, IDG Ventures and Sapphire Ventures. The company operated 10 offices as of January 2016 and worked with clients including Kellogg’s, ConAgra, Time Warner and JetBlue.
“Becoming part of Salesforce is great news for our current and future clients, our partner network and our employees. Being part of Salesforce gives us the opportunity to pursue our mission of driving more relevant and valuable consumer experiences by putting people data to work, with greater reach and impact than ever before. We will continue to deliver world-class enterprise data infrastructure and breakthrough business results for our clients. We’ll now be able to do so faster by leveraging the global reach and resources of Salesforce,” sources from Krux said in a company statement.
Jon Suarez Davis, Chief Marketing and Strategy Officer at Krux Digital – Krux Digital, spoke at the 2015 edition of #PortadaLat when he was VP Global Media & Strategy at Kellogg, the job he had prior to his current position at Krux.
Jon Suarez Davis, VP Global Media Strategy at Kellogg Company, and a speaker at #PortadaLat which is taking place in Miami, would love to be able to buy advertising on YouTube. “We can’t because of their lack of third party verification. They do not allow third party tags,” Suarez told Portada. Kellogg’s and other major marketers have been asking publishers including YouTube to enable them to check viewability rates.
According to Suarez, Kellogg uses other platforms for online video including Brightroll and Hulu. The executive did say that Kellogg is an active partner with Google in other areas. He also understands that there are privacy and security issues that can make YouTube “walled garden” approach understandable.
I find Latin America fascinating from a media perspective.
Suarez Davis gave a much expected presentation on how his company builds brand leadership in a disruptive world. “I find Latin America fascinating from a media perspective,” Suarez, who is married to an Argentinean, said. At the base of Kellogg’s strategy is “Human understanding that leads to Consumer Insights.” His strategy is based on the three “Is” : Illuminate, Innovate and Iterate. Suarez-Davis stressed the importance of Activation: “Activation is about bringing the idea to life. And our LatAm team particularly excells at it.”
Jon Suarez-Davis is VP global media and digital strategy at Kellogg Company. In this role, he is responsible for global media strategy, including the U.S. Hispanic and Latin American markets, and all forms of digital marketing – consumer and shopper. Suarez is going to be one of the major speakers at our #Portadalat events in Miami on June 3 – 4. Check out the video of our Interview with Suarez Davis below!
“The opportunity marketers face is to understand human behaviour much better than we ever have. Grasp the opportunities that are truly meaningful and deliver experiences throughout the path of purchase. It’s a dynamic and also daunting time to be a marketer.”
“Latin America is undergoing demographic explosion in several markets. Many of its markets are adapting technology at a very rapid clip.”
“There are two areas of disruption. From my perspective. Two major things. First, fragmentation of media. We are seeing hyper media fragmentation across traditional media broadcast, TV as well as online channels. That fragmentation is both a barrier as well as an opportunity for marketers. The second area of disruption are consumer Expectations for brands. Consumer Expectations are rising. Consumer want to know more about the brands they are buying, what they stand for, where the goods are produced etc. On both these areas of disruption the key is to truly understand the need of the consumer and deliver.”
“Brazil is leading the way in online usage upwards of 6-8 hours online a day. It’s exciting for marketers to see how consumers are adapting technology and device specific components at a very rapid pace.”
“The world of consumer packaged goods is quite crowded and highly competitive. How we distinguish ourselves is through our brands. Understanding the diversity in a very high dynamic region like Latin America is critical for us.”Tickets to #Portadalat are going fast! Register here!
When it comes to mobile marketing campaigns, it is recommended to reach the Multicultural Consumer first. That is what Isabel Rafferty – VP of USA Sales, Adsmovil, Marla Skiko – EVP, Director of Digital Innovation, SMG Multicultural,Scott Kellstedt – GM, Appsnack, an Exponential division, Xavier Mantilla – SVP Multicultural Media, Identity, Mediabrands and Stacey Abreu – Group Planning Director, Mindshare established during a panel held a the MobileMediaSummit during NYC’s Advertising Week. The panel was moderated by Jon Suarez-Davis – VP, Global Media & Digital Strategy, Kellogg Company.
Due to the over-indexing of Hispanic and African American consumers in both the usage and engagement with mobile media, Mindshare’s Stacey Abreu recommends marketers to initiate their mobile marketing campaigns by targeting the multicultural consumer first.Hispanic and African American consumer targeted mobile campaigns is where advertisers should see the biggest bang for their buck.
Adsmovil’s Isabel Rafferty noted that mobile is particularly important when it comes to reach out to the Hispanic consumer, because a substantial part of the Hispanic population uses mobile as their only access point to reach the Internet. SMG Multicultural’s Skiko added that communications with Hispanics should be anchored in mobility. One of the challenges for marketers, according to Skiko, is that there is not enough content that is culturally relevant. That is why agencies and brands have to start content marketing campaigns targeting the Hispanic population almost from scratch by creating the content.
Communications with Hispanics should be anchored in mobility.
Latin America presence at NYC’s Adweek
Members of the audience at the Mobile Media Summit asked whether there are substantial differences between Latin American (south of the border) and the U.S. Hispanic attitudes toward mobile media. According to Skiko, the characteristics of the audiences in Latin America are relatively similar to the U.S. Hispanic market. The only major difference is that the U.S. Hispanic consumer straddles between two worlds in a sort of balance between the Hispanic and “general market” cultures. As Identitity’ Mantilla put it, in Latin America “Spanish or Portuguese are the general market.” To Mantilla in the Latin American mobile market, which currently has an approximately US $250 million annual spend, there is more SMS and text messaging used for advertising that in the U.S. due to the less advanced features of the mobile phones the majority of the population owns . In addition, the length of videos is shorter in Latin America. According to Mantilla, mobile amounts to 20% of digital budgets in Latin America. Latin American marketing, media and advertising professionals were definitely present during NYC’s advertising week with more than 25 Brazilian executives present during the MIXX conference and also many others from other countries, including Mexico and Argentina.