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HootSuite acquires uberVU in another Social Media industry shakeup

January 24, 2014 at 1:30 PM

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by Mikul Patel

Digital Marketing Consultant at Matraxis

In an industry-shaking move, HootSuite, a leading social media management system, have announced the acquisition of uberVU, an innovative provider of social analytics for over 200 worldwide brands.

 

At Matraxis we have seen a big change in the social media environment in recent years, such as Salesforce's big-money purchase of Radian6. Are we moving towards the maturity stage of social media analytics as the best services become successful whilst others fade away?

 

hootsuite ubervu acquisition 2014

 

How will HootSuite benefit from this deal?

Founded in 2009, HootSuite has seen solid growth in recent years. Last year it was reported that $165 million was raised in funding to be used to expanding the product offering. The purchase of uberVU appears to be a strong intent in taking social analytics seriously. It is estimated that 95% of HootSuite's userbase currently use the free version of their social media management tool.

 

By purchasing uberVU, HootSuite will have immediate access to the innovative analytics that uberVU have developed. The challenge will come in monetising those free version users. With the ability to now offer a comprehensive social management and analytics suite, HootSuite can now aim to become the standard social media tool for digital brand teams.

 

As an agency that has worked with uberVU Social Media Monitoring before, we know some of the great work that uberVU have achieved; having an innovative approach to analytics and presenting results in a meaningful way that is easy to understand. With a rumoured purchase price in between $15-20 million, I think HootSuite have made a smart move!

 

 

What does this mean for social media analytics?

It almost seems inevitable, once an industry reaches the maturity stage, the small players in the market begin to lose traction and find it hard to compete against competitors who have been purchased by larger enterprises. We have seen it happen in Web Analytics with Google purchasing Urchin, IBM buying Coremetrics, and Adobe acquiring Omniture.

 

Some may argue this practice is unfair for smaller companies, but as is the nature with digital companies, you have to be competitive and have an original offering to standout in the market.

 

From a brand perspective, the ability to use a single service to do all your tasks far outweighs the difficulties in managing multiple niche services. With HootSuite's latest acquisition, we may now see these larger social media services starting to compete on price.

 

social media icons

 

Do you have the budget for social media management and analytics?

Managing budgets for social media activities can be difficult to gauge due to the difficulties in calculating the ROI from social media. There are still some great affordable tools in the market that are geared toward social media management, analytics and promotion.

 

At Matraxis we are developing a new exciting social media suite of products to give brands the flexibility to listen, measure and control social activities. Stayed tuned or contact us for more information on these exciting developments!



Tags: Social Media Hootsuite uberVU Social Media Management Social Media Analytics
Category: Social Media News

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