Adobe Systems Incorporated (ADBE - Free Report) is boosting its Adobe Experience Cloud with new auto-focused analytics, personalization and advertising capacities.
The company stated that it is working with automakers and using Adobe Experience Cloud and Automotive Grade Linux project to help companies bring digital marketing in cars.
Adobe shares have rallied a massive 51.8% year to date, significantly outperforming its industry’s 27% rally.
The Concept is All About Capturing Data
The company is allowing marketers to use its Sensei AI, analytics and market capacities to assess data from web-connected vehicles. This is to help them personalize audio as well as in-car screen ads based on behavioral patterns (like interactions with infotainment systems and song selections) of people behind the wheels.
Adobe Systems Incorporated Revenue (TTM)
While Adobe Marketing Cloud allows optimization of data, Adobe Experience Manager enables brands to offer a personalized experience. Adobe Target allows brands to optimize content variations and Adobe Campaign provides a delivery platform (audio, video or search) for in-car messages.
Adobe will help place audio ads for music streaming and digital radio using its Advertising Cloud. After an ad is played, marketers are able to re-target users across video, display or search platforms.
Privacy a Major Issue Adobe Admits
There is no guarantee that drivers will reveal all information to advertisers and allow marketing messages inside the vehicle. Adobe has assured in a statement that it will respect consumer trust and transparency factors while developing new products and services.
Adobe now finds itself in direct competition with giants like of Alphabet Inc.’s (GOOGL - Free Report) Google and Amazon.com, Inc. (AMZN - Free Report) . While Google produces software for automakers, Amazon is partnering with Ford Motor Company (F - Free Report) for Alexa services inside Ford cars and connecting to cars from home.
The Bigger Picture
We believe that with the new move, Adobe is practically extending its digital marketing offerings to a new market and that will drive the next phase of revenue growth. The concept is at a nascent stage but will open up far more opportunities as self-driving technology matures.
Automated cars are using technology to pick up images of the surrounding areas to process and match them with the massive amount of (navigation) data that they generate to decide a course of action. This can be used by Adobe to help marketers carry out location-based promotions such as offers at a nearby restaurant or store, or discount at a salon.
Adobe has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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