What’s behind Hootsuite’s acquisition of AdEspresso?

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Hey guys,

It’s only a week till Valentine’s, so we hope you have all your creatives up and running to get your e-Commerce endeavors for 2017 up and running 🙂

We don’t know if you’ve heard, but Hootsuite, which offers a great way of automating your posting on social media as well as cross promotion, has acquired AdEspresso for an undisclosed amount of money.

zefo-hootsuite

(Courtesy of TechCrunch)

Why is this extraordinary? Since now Hootsuite has entered the self-serve game and would offer exclusive packages in terms of paid content.

This is their way of combating both Adwords as well as Facebook Ads, in a market that is worth over $33 Billion.

How would they achieve that?

AdEspresso is a platform for advertising on both Facebook as well as Instagram, A-B test, cross channel analytics, the works.

Instead of growing Hootsuite Ads that was introduced back in 2015, Hootsuite has decided to use a better tool in their eyes to offer paid content on Facebook and Instagram initially.

The idea behind this move is to naturally augment and boost views for other social media ads marketers create.

“Owned and earned content are not going away but the augmentation with paid is critical to success,” Ryan Holmes, the founder and CEO of Hootsuite, said in an interview. “The trend with the algorithmic ranking of content and what you see in your stream means it’s not the same world it was five years ago. Every social network and stream has filtration, so for brands to get their message across they need to have that paid component.”

What’s behind the move though?

Hootsuite hardly has paying customers in its Freemium model; most of their users use the system for free and never convert into paying clients.

By acquiring AdEspresso, a platform that people actually pay to use, Hootsuite believes it can convert “free” users into paying ones.

What’s for the future?

Perhaps Hootsuite would also provide means to advertise better on Twitter, Pinterest, Tumblr and the likes?

Better looking native ads?

Yet to see, but this is a growing trend that isn’t going to stop in the near future, so be sure to follow us.

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