Melissa Campanelli’s The View From Here: What the IBM/Coremetrics Deal Means for Marketers

Arguably the biggest news of the week in the online marketing world was the announcement that IBM, the granddaddy of technology companies, will acquire Coremetrics, a leader in web analytics software.

Arguably the biggest news of the week in the online marketing world was the announcement that IBM, the granddaddy of technology companies, will acquire Coremetrics, a leader in web analytics software.

The acquisition will enable Big Blue to help its customers gain intelligence into social networks and online media sources through a cloud-based delivery model. Then, they can incorporate this insight into their processes to create smarter, more effective marketing campaigns.

“With this acquisition, we are extending our capabilities to give clients greater insight about customer behavior and sentiment about products and services, and give true foresight into their future buying patterns,” said Craig Hayman, general manager, IBM WebSphere, in a press release.

This isn’t the first time a large technology company catering to enterprises has purchsed a web analytic company in an effort to expand their online marketing offerings. A few years ago, Google bought Urchin, for example. And last year Adobe bought Omniture.

But what does this all mean for marketers? For one, it validates the growing importance of digital channels and online marketing.

“Less than a year after the acquisition of Omniture by Adobe, IBM’s announcement today represents overwhelming testimony to the value of online marketing technology as a core piece of an enterprise strategy,” said Alex Yoder, CEO of Webtrends, a Coremtrics competitor. “In today’s world, the growing importance of data-driven decision making is not a luxury, but a minimum requirement to competing in today’s markets. Businesses, governments and nonprofits all realize that facts and insight let them point their innovation and resources in the proper direction.”

While Yoder went on to say that Webtrends leads the market in open standards and detailed customer information — and that his company has seen a 51 percent increase in new business bookings year over year — he added that it will be interesting to see how the acquisition “ultimately impacts enterprises looking to understand data across the multiple digital channels that comprise today’s marketing landscape.”

Responsys, a partner of Coremetrics, said in a prepared statement that the web analytics firm has taken an innovative approach to managing and leveraging the vast amounts of online customer data that today’s companies generate, and that “IBM, as the largest business technology company in the world, is sending a strong message that these capabilities must be considered part of the core ‘stack’ required to be successful in an increasingly digital world.”

Responsys went on to say that this acquisition is “raising the bar” for the industry by helping make advanced online data and marketing solutions a central and established aspect of running a business.

What do you think about the acquisition? Let me know by posting a comment below.

Is Cuil Cool?

Perhaps the biggest announcement in the interactive space this week was from Cuil (pronounced COOL), a technology company that unveiled its search offering, also called Cuil. An old Irish word for knowledge, Cuil was developed by a team with extensive history in search.

Perhaps the biggest announcement in the interactive space this week was from Cuil (pronounced COOL), a technology company that unveiled its search offering, also called Cuil. An old Irish word for knowledge, Cuil was developed by a team with extensive history in search.

According to its press release, the company is led by husband-and-wife team Tom Costello and Anna Patterson. Costello developed search engines at Stanford University and IBM; Patterson got her training at Google where she was the architect of the company’s search index and led a Web page ranking team.

They refused to accept the limitations of current search technology and dedicated themselves to building a more comprehensive search engine. Together with Russell Power, Anna’s former Google colleague, they founded Cuil to let users “explore the Internet more fully and discover its true potential,” according to a company statement.

Cuil reportedly combines the biggest Web index — 120 billion Web pages — with content-based relevance methods, results organized by ideas, and complete user privacy. This is supposed to give users a richer display of results. It offers organizing features, such as tabs to clarify subjects, images to identify topics and search refining suggestions to help guide users to the results they seek.

The conversation about the search engine reached fever pitch in the blogosphere this week, with some experts saying Cuil should be taken seriously, and others saying it is a poor search engine with little relevance and technical issues.

I guess we’ll have to see what the future holds for the search engine. If Cuil does take off, then marketers may need to rethink their search engine optimization strategies. At present, however, it’s probably best to cool your heels. There are too many issues that will need to be addressed if Cuil is to make any sort of impact on search engine optimization.