February 28, 2012 RETAILERS ARE BUILDING THEIR OWN DIGITAL MARKETING DIVISIONS

As we noted in our Online and Mobile Industry M&A press release, large retailers are becoming increasingly active in digital marketing. We mentioned Walmart’s acquisition of Kosmix Corporation, a social media company, for $300 million. Kosmix is now part of @WalmartLabs, the retailer’s social and mobile commerce platform. In early January, @WalmartLabs acquired Small Society, a company that helps organizations create iOS applications for Apple devices.

Other retailers have completed deals related to digital marketing as well. For instance, The Home Depot announced its acquisition of Redbeacon.com on January 20th. 

Redbeacon utilizes technology that connects homeowners to local service professionals. As an example, Redbeacon’s algorithm is capable of incorporating data from a consumer’s Facebook account in order to make tailored suggestions on which professionals users should hire.

In addition, online retailer Amazon.com acquired Quorus in the fourth quarter of 2011. Quorus develops marketing and social shopping applications for retailers, allowing companies to communicate and live chat with prospective customers based on the products they’re interested in purchasing.

These acquisitions by Walmart, The Home Depot, and Amazon.com shows there’s interest among retailers in growing market share by expanding established brands through social media.