Demandbase announced that they acquired Engagio yesterday. The two ABM Orchestration companies have complementary assets that will help position them in the nascent, but growing, ABM platform segment. According to Demandbase, “The acquisition reinforces Demandbase’s leadership in the ABM space and positions it to become the dominant B2B marketing platform company. Furthermore, the acquisition will help accelerate Demandbase’s revenue growth from $100 million to reach its next immediate milestone of $250 million.”
Deal terms were not disclosed. Engagio CEO and co-founder Jon Miller, who also was a founder of Marketo, said that Engagio was not a distressed asset, but a complementary acquisition based upon a shared vision of ABM.
“Engagio didn’t need to do this deal,” said Miller. “We had plenty of runway and had taken prudent moves to break even. This deal didn’t happen because the company was struggling or needed an exit. We shared the same vision, and that is why the deal happened.”
The firms are long-term partners and have done co-marketing in the past. A deal has been in discussion since late 2019 when Gabe Rogol became the CEO of Demandbase.
“We had half our road map done but needed this other piece, and Engagio had half their road map done and needed this other piece, and we found each had the piece that the other needed,” said Rogol.
But COVID made the investors nervous as it increased the level of market uncertainty. “We had a lot of push back from our investors,” Rogol recalled. “The reaction we got was, do you want to do an acquisition at a time when you don’t know what’s going to happen in a week from now? We told them this would fulfill each other’s roadmap more than anything else we could do. This says a lot about our investors and the support that we had.”
Demandbase was an early pioneer in the ABM space, positioning Account Based Marketing as a critical strategy for B2B sales and marketing teams. While other companies were still focused on demand generation, Demandbase was calling for a strategic focus on key accounts.
Just last week, Demandbase was named a leader in the “The Forrester New Wave: ABM Platforms, Q2 2020” report. Demandbase was given high scores for its account-based advertising, personalization, product roadmap, and market approach along with its marketing automation connectors.
“We are honored to be recognized by Forrester as a leader among ABM platforms. ABM is now an established technology category and a proven business growth strategy. That’s why we continue to see so many B2B companies investing in ABM, even in these uncertain economic times,” said Demandbase CMO Peter Isaacson. “As Forrester noted in their report, customers recognize our commitment to deliver best-in-class functionalities like site optimization and hands-on customer support to help them become successful. We believe that this evaluation simply confirms our leadership position, and the power of our platform to help support B2B companies through data, insights, and action.”
In the same report, Engagio was named a strong performer. Forrester noted that Engagio “offers a channel-agnostic approach to coordinating account-centric engagement across the customer’s existing complementary marketing and sales solutions” but needed to “step up delivery on its product roadmap and vision.”
“This acquisition combines the leader in ABM with Engagio, one of the early pioneers of the category. It will change how B2B revenue teams operate,” said Rogol. “Sales and Marketing alignment isn’t enough. These teams must start moving as one — with a single set of data and insights, orchestrated across the entire buying journey. Demandbase can now deliver that with the definitive, no-compromise ABM Platform.”
The two firms have been partners for four years and shared “a consistent vision for the category,” along with dozens of common customers, wrote Rogol. “By bringing together the clear leaders in ABM, we are better positioned than ever to help B2B marketers acquire, grow, and retain customers.”
“Most people who are not ABM experts look at us and think we are competitors. But in actuality, we have been co-marketing partners. We jointly founded the ABM Leadership Alliance and we actually have over 30 customers using the product. So, even though it looks on the surface like there is overlap, in reality, there was very little.
The second thing that we realized is how similar the company’s core values are and how similarly we operate. Mergers are really hard to get right. History shows that it is probably more likely than not that mergers do not meet the expectations that people had, but the way you overcome that, the way you make the merger successful, is when the companies have that common values and common operating models. This was an idea that had to happen because the combination was so compelling, from both a product and a company value perspective.”Former Engagio CEO / Demandbase Chief Product Officer Jon Miller
Engagio brings a set of complementary content and functional capabilities to Demandbase. On the data management side, Engagio offers 1st-Party Sales Data, 1st-Party Marketing Data, and Lead-to-Account Matching. Engagio Orchestration tools include Engagement Analytics, Audience Management, Cross-Channel Automation, Journey Attribution, Customizable Dashboards, and ROI Reporting. Engagio campaign automation supports LinkedIn Advertising, MAP and CRM integrations, Sales Insights, and 3rd-Party Audience Management.
Just last month, Engagio announced the availability of Scout for Sales, their new email and calendar mining tool that “empowers sellers to understand their target accounts more deeply, prioritize them for maximum results, and take action to close deals faster.”
Demandbase data management tools include 3rd-Party B2B Data, Website Activity Tracking with IP Firmographic Match and Enrich, Ad Campaigns, and Proprietary Intent. Demandbase orchestration and measurement tools cover Account Selection, Dynamic Audiences, Audience Segmentation, and ABM and Engagement Analytics. Demandbase offers a set of campaign management tools, which include a Proprietary DSP, Account-based Ads, Intent-based Targeting, Website Personalization, Webforms, and integrations with MAPs, CMS, and analytics platforms.
At its March Innovation Summit, Demandbase rolled out three new capabilities: Site Analytics with improved web engagement metrics; Data Stream, which pushes Demandbase data into BI platforms for expanded account-level reporting; and Self-Service Targeting.
In February, Demandbase released Dynamic Audiences, an ABM feature that helps B2B marketers automate their advertising and marketing campaigns. Dynamic Audiences automatically adjust campaign audiences with dynamic targeting based upon CRM updates, recent offsite intent activity, website engagement, or other events that support a specific campaign.
“The combination of Demandbase and Engagio accelerates the development of our next generation, account-based B2B marketing platform. One that spans people and accounts. One that manages the complete buyer’s journey. One that is truly omnichannel—from ads to personalization to sales activity. And one that truly aligns sales and marketing so that you can drive the metrics that matter—pipeline, new business, retention, and upsell.”Demandbase Acquisition FAQ
Demandbase admitted that the ABM category is still being defined. In its discussion of the merger, Demandbase offered the following process elements as core to ABM:
- B2B Customer Data Platform: The CDP supports both first and third-party data sets, multi-platform data ingestion for the creation of a 360-degree customer view, intent signals for both accounts and contacts, and audience segmentation. “Unifying the data is critical for aligning sales and marketing, as it gives both teams a common understanding of each account, the buying committees within them, and the insights needed to move them through the buyer’s journey,” wrote Rogol.
- Planning, Orchestration, & Measurement: Analytics and orchestration help sales and marketing teams determine whom to reach out to, a compelling message, and shared metrics for determining success and ROI. Features include Next Best Action recommendations, dynamic messaging across the buyer’s journey, and “an understanding of accounts and buying teams.”
- Omnichannel Campaigns: The ABM platform requires a broad set of messaging and marketing tools, including website personalization, advertising, and third-party integrations.
- An AI/ML-based technology foundation: The ABM platform should deliver real-time insights for personalization, interpreting intent signals, and account-based insights.
- An Intuitive User Experience: The User Experience needs to hew more closely to B2C product experiences, and “in order to maximize productivity, B2B technologies should be understood without extensive product training,” wrote Rogol.
In the near-term, Engagio and Demandbase will operate as standalone platforms. An Enterprise Edition will offer both platforms “at an aggressive price point.” The initial plan is to have a combined platform available in November. “We anticipate there will be different baseline product versions offered with a continued ‘a la carte’ solution offering for additional functionality to our clients (e.g. Targeting, Orchestration, Engagement, Attribution),” stated the firm’s acquisition FAQ.
“Going into next year, there is just so much innovation that can continue to happen. The process of B2B marketing and selling is undergoing so much change. That move from the linear baton handoff to the coordinated soccer team, that just creates new opportunities. New opportunities for a platform that combines accounts and people into a single solution. That lets people work, not just to generate new business, but to also drive cross sell expansion and retention, which is so important to so many companies these days. I think the last piece that I think CMOs can expect from this is just a simplification of their technology stack. There are 8,000 MarTech companies out there. It’s a really challenging thing for any company to figure out, “What do I need and what are all the pieces and how do I assemble this thing into something coherent?” Having a unified platform like this lets them have fewer pieces of their stack, simplify the model, simplify the equation and ultimately save money, which a lot of people are looking to do in today’s economy.”Former Engagio CEO / Demandbase Chief Product Officer Jon Miller
“I think this is good news for the ABM category,” opined senior content marketer and marketing technology analyst Barb Mosher Zinck of Diginomica. “ABM’s rise to popularity (even though the approach has been used for years in Sales) has been somewhat fast and without a clear definition of what the technology should look like. Most companies that have an ABM strategy use several tools to make it work. And that makes it more complex and harder to do. Integrating these two platforms is going to give us a view of ABM that we haven’t seen with any single technology before. And that might make it easier for companies to adopt the strategy faster.”
Miller will be joining Demandbase as the Chief Product Officer while Brian Babcock has been tapped as the Chief Technology Officer. Engagio employs a team of 40, while Demandbase has 300 employees.
“The acquisition accelerates everything I wanted to create in an ABM platform. We will combine Demandbase’s strong go-to-market function and technological expertise with Engagio’s deep marketing automation and CRM expertise,” said Miller. “But it’s our shared vision for reimagining both the ABM and B2B martech landscapes that gets me truly excited for the future.”