Omniture dropped news today of its newly minted partnership with the WPP Group. WPP is the second largest media conglomerate on the planet and not a bad dance partner for OMTR.
The partnership involves three key facets:
- 1) An investment by WPP into Omniture to the tune of $25M. This gives WPP a 3.5% stake in Omniture.
2) A commitment to joint development of new technologies and integration of existing solutions. This will include integration of some WPP assets into the Genesis platform and potentially new offerings.
3) An educational component that includes training 500 WPP consultants on OMTR products.
Here are a few thoughts on why this is a strong play:
It’s good for Omniture because:
It’s good for WPP Group because:
It’s potentially good for the Marketing industry because:
Okay, so when you tally it all up, it appears that Omniture should be all smiles about this deal. And they are…
I had the chance to speak with Aseem Chandra today (Omniture’s SVP of Product Marketing). When I asked…”Why the $25 mil? From an outsider’s perspective, it seems like you could have established this partnership without any financial terms.” He responded that the investment was proof of commitment to ensure that WPP had some skin in the game. Aseem went on to say that the investment also ensured that both parties would advance the partnership and develop mutually profitable solutions that would in turn aid their clients in achieving success. He was clear that the partnership does not preclude Omniture from forming relationships with other agencies, so the door is still open for more expansive agency relationships. That said, WPP retains the option to purchase more shares if undisclosed performance goals are achieved.
So, congrats to Omniture and let’s hope this new partnership bears innovation that benefits the entire analytics industry and moves us forward.