Adobe Unveils Advertising Cloud TV Integrated With Analytics

Adobe Systems Incorporated (NASDAQ:ADBE) on Monday announced the launch of Advertising Cloud TV and its integration with Adobe Analytics cloud. The move is aimed at improving advertisers reach with appropriate messages.

The move appears to be Adobe’s latest bid to boost its stake in the fast growing TV advertisement market.

Data-driven Planning and Purchase of TV Ads

The solution facilitates data-driven planning and purchasing of TV advertising. Adobe claims that the solution allows marketers to purchase all forms of TV ads encompassing live linear TV, connected TV, addressable TV, over-the-top (OTT) and video-on-demand (VOD) and thus could cover 95% of American households. Integration of the service with Adobe Analytics cloud enables marketers to leverage on first-party audience data to better tap linear TV ads.

Moreover, it allows targeting audiences who have already exhibited their intent through online searches. Further, marketers can plan target, purchase and measure discrete audience using additional datasets from pay TV providers, TV manufactures and MRI.

The service works with a number of broadcast and cable networks including NBCUniversal, A&E Networks, Univision, Discovery Communications (NASDAQ:DISCA) and others.

Notably, Adobe and Microsoft (NASDAQ:MSFT) have recently joined forces to boost their respective marketing and sales software products. The duo is working on a shared data format between Adobe’s Experience Cloud (marketing software suite) and Microsoft Dynamics (sales software) to allow the seamless integration of the two software systems.

We note that Adobe has had an impressive run on the bourse over the last one year. The stock gained 40.7% compared with the Zacks Computer - Software industry’s gain of 29.8%. We expect the company’s market position, compelling product lines and continued innovation to drive this momentum going forward.

TubeMogul Acquisition Paying Off

Adobe Advertisement cloud TV has been developed using TubeMogul’s (Adobe’s recent acquisition) Programmatic TV (PTV) platform. The acquisition of TubeMogul was aimed at creating an unmatched end-to-end independent advertising and data management solution.

The developments so far indicate that Adobe is well on track to make the most of the acquisition. We expect the TubeMogul acquisition to help Adobe strengthen its foothold in the digital marketing space as well.

TubeMogul will enable advertisers to capitalize on online video campaigns, thereby expanding Adobe’s offerings. Moreover, with this acquisition, Adobe can further distinguish its Marketing Cloud offering from the likes of Salesforce (NYSE:CRM) , International Business Machines (NYSE:IBM) , Oracle (NYSE:ORCL) and Pardot.

Our Take

We expect the move to boost Adobe’s Digital Marketing segment, which did well in the last reported quarter. Within this segment, Adobe Marketing Cloud revenues were up 26% year over year to $477 million.

Adobe Systems Incorporated Revenue (TTM)

The improvement came on the back of strong contribution from TubeMogul acquisition (added $32 million of revenue), accelerated conversions and international expansion.

Currently Adobe carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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