When General Motors announced it would no longer use Facebook advertising (adding to the chagrin of investors caught up in the Facebook IPO debacle) some began whispering that Facebook advertising specifically and social media advertising in general were on the decline. But not everyone has that same sinking feeling. In fact, some (perhaps most) believe that social media marketing is still in its infancy.
Count among that latter group Oracle who shelled out a rumored $300 million this week for social media marketing platform Vitrue. If you are a big company seeking Facebook success you have already likely called Vitrue. They specialize in marketing solutions for companies who wanted to advertise on Facebook or use the free features on the service to increase revenue.
Vitrue has built a strong business model around using Facebook as an advertising platform for business. In fact, estimates are that they were in line to post $100 million in revenue this year. And Oracle is hardly a new kid on the block. They have a history of making sound business decisions based on trends which they know how to exploit.
Combined, these points seem to strongly indicate that social media advertising is far from dying, and there might actually be time for you (and others) to jump on the bandwagon.
Beyond Facebook, Vitrue helps marketers manage their presences on Twitter, YouTube, Pinterest, Instagram, and other platforms. One of the hallmarks of Vitrue has been it’s ability to rapidly integrate with new partners like Klout to give it talking points for dissuading clients from going to competitors. Vitrue is “nearly profitable” and was projected to reach profitability in this fiscal year, said our source. TechCrunch understands that Reggie Bradford, the CEO, will “very much remain part of the equation” when Vitrue becomes part of Oracle. His exact title is to come.
The purchase continues the trend of large, old-world Internet marketing companies buying their way into social after being slow to adopt. Adobe bought social advertising provider Efficient Frontier for $400 million in November 2011, just a few months after Efficient Frontier had bought Facebook marketer and application developer Context Optional for a reported $50 million.