The social media marketing space has become hotter with Google purchasing Wildfire Interactive for an estimated $350 million. Most major technology companies that have built up a substantial subscriber or membership base are looking for ways to monetize this. They can do so by attracting advertising and marketing dollars if they are able to help corporate target customers effectively.
Google has been trying to improve the effectiveness of its social media offering – Google+. To succeed in social media marketing it is essential for businesses both large and small to innovate and keep in touch with the pulse of the customer. Large enterprises have the resources to deploy sufficient staff to monitor customer interests and trends, but small and medium enterprises can achieve marketing success by taking advantage of technology.
With the acquisition of Wildfire, Google will be able to offer advertising and marketing campaigns on social media to its customers. Changing consumer behavior and interests have meant that most companies now utilize or plan to use social media to connect with their customers and fans.
Wildfire Interactive is of particular interest to Google because it has the technology to enable small and medium enterprises to use social media effectively in advertising and marketing campaigns. Google’s purchase has placed it in an advantageous situation when compared to rivals Facebook and Twitter. This is because Wildfire Interactive has a partnership with Facebook that ensures that Google will obtain some of the profits raked in by Facebook. Facebook cannot block Wildfire’s API without causing concern in the other companies developing applications for it. However, Facebook can promote rivals of Wildfire in a bid to restrict Google’s profits.
Apart from Google, other technology majors too have been trying to obtain footholds in social media marketing. Recently Salesforce.com purchased Buddy Media and Oracle bought Involver. This increased competition will also benefit small and medium businesses that can obtain great marketing deals from industry dealers much more easily.