Efficient Frontier

Adobe Acquires Efficient Frontier To Boost Its Digital Marketing Solutions

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Adobe this morning announced its acquisition of Efficient Frontier, a digital marketing company, without disclosing the financial terms of the deal.

Adobe says the acquisition of the company will enable it to add multi-channel ad campaign forecasting, execution and optimization capabilities to its existing Digital Marketing solutions. Notably, Efficient Frontier will bring to Adobe social ad buying capability for Facebook, employing the company’s optimization algorithms to predict results and drive greater digital marketing ROI for its clients.

These capabilities will be integrated with the Facebook ad buying functionality currently available with Adobe (Omniture) SearchCenter, Adobe says, while Efficient Frontier’s social marketing engagement platform will be combined with Adobe (Omniture) SocialAnalytics.

Looks like Efficient Frontier made the right bet doubling down on the social media marketing space with its (reportedly $50 million) acquisition of Context Optional back in May 2011.

Other solutions that Efficient Frontier brings to Adobe’s table are a search optimization system, a real-time bidding system for display ads and an integrated auction-based buying suite for search, display and social media.

The transaction is expected to complete in the first quarter of Adobe’s 2012 fiscal year. Adobe did not disclose the terms of the deal, but pointed out that the potential financial impact of the transaction is not reflected in financial targets previously provided by Adobe.

More guidance will be provided following the completion of the transaction.

Efficient Frontier was backed by Mitsui Ventures, Cambrian Ventures and Redpoint Ventures. In fact, President and CEO David Karnstedt previously served as Executive-in-Residence for Redpoint Ventures, after leading Yahoo’s North American Sales for over 7 years.

For Adobe, this is the seventh acquisition this year (after Auditude, Typekit, Nitobi Software, IRIDAS, EchoSign and Demdex) according to CrunchBase data.

Related reading: Adobe To Acquire Omniture For Approximately $1.8 Billion