Google + HubSpot. Is that a thing?
This week, there has been a flurry of news that Google is considering acquiring HubSpot.
Some people are disappointed by the outlook. It pleased others.
But is it likely? Is that possible? What does that mean for marketers? What does this consideration mean for marketers?
Well, we asked Robert Rose, CMI’s chief strategic advisor, for his thoughts. Watch this video or read below.
Why Alphabet wants HubSpot
Google’s parent company Alphabet is reportedly considering acquiring inbound marketing giant HubSpot.
The potential price could range from $30 billion to $40 billion. That would be Alphabet’s largest acquisition to date. The current deal to hold that title was made in 2011 when it acquired Motorola Mobility for more than $12 billion. It was later sold to Lenovo for less than $3 billion.
Even if the deal with HubSpot goes through, it would be unlike anything the classic villain has been doing for the past two decades.
At first glance, this deal may seem pointless. Why is Google willing to spend three times as much money on inbound marketing, or CRM and marketing automation businesses?
When you look at it again, it makes a lot of sense.
I don’t know if you’ve noticed, but I and the rest of CMI spend a lot of time discussing privacy, owned media, and the deprecation of third-party cookies. We just talked about it two weeks ago. It’s really happening.
The oxygen being sucked out of the ad tech space presents a compelling case for Alphabet to diversify away from third-party data and classic surveillance-based marketing.
Yes, this potential acquisition is about data. HubSpot will give Alphabet the keys to a kingdom of 205,000 enterprise customers and almost certainly tens of millions of customer data. Alphabet will also have access to the content, marketing and sales information consumed by its customers.
Conversely, this agreement will allow HubSpot’s clients to create more targeted programs in the Alphabet ecosystem, upload data to drive more personalized experiences in their properties, and leverage Google Workspace infrastructure. It will be an instant tip for connecting to structures.
Add in Gemini’s ideas and you can see how Google monetizes its generative AI tools, in addition to understanding how they can be used in advertising on search results pages.
What the acquisition means for HubSpot customers
I may be stretching myself, but imagine this world. Hubspogle customers have access to an interface where Google’s Gemini prioritizes their own media data (websites, e-commerce catalogs, blogs, etc.) when answering questions.
Recent reports have also suggested that Google may put a paywall around new premium features in its artificial intelligence-powered search generation experience. Imagine this as your new gateway to marketing. In other words, users can subscribe to Google’s AI for free, but Hubspogle customers can access that data and use it to create targeted offers.
Acquiring HubSpot would instantly make Google Workspace a stronger competitor to Microsoft 365 Office by giving small businesses additional inbound marketing capabilities.
But in a world of leased land, where Google is the landlord, governments will likely look at acquisitions. But, and it’s a big deal, I can’t lie (yes, I just did it). But the key question is whether this acquisition spree can be accomplished without running afoul of regulatory issues.
Some analysts are of the view that there is no problem. Some people say, “Well, that’s impossible.” In any case, will anyone touch it in an election year? That’s a completely different story.
What marketers need to know
So what do I have?
It’s unlikely that Google will jump on this aggressively, but something strange is happening. That will bring exciting disruption to the market.
This is for sure. Acquisition conversations need more data points to get better at using owned media to attract and build audiences, and use that first-party data to better communicate with customers. and collaboration is essential.
It’s only a matter of time before Google takes action. They may be just testing the waters for now, but they will move here. But whatever they do, having their customer data house in order will set them up for success.
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Cover image: Joseph Kalinowski/Content Marketing Institute