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Google + HubSpot. Is it a thing?
There has been a flurry of news this week about Google considering buying HubSpot.
The prospect dismayed some. It excited others.
But is it likely? Is it even possible? What would this mean for marketers? What does this consideration actually mean for marketers?
Well, we asked CMI's chief strategy advisor, Robert Rose, for his opinion. Watch this video or continue reading:
Why Alphabet might want HubSpot
Alphabet, Google's parent company, is apparently considering acquiring inbound marketing giant HubSpot.
The potential price tag could be between $30 billion and $40 billion. This would be by far Alphabet's largest acquisition. The current deal with this title occurred in 2011 when it acquired Motorola Mobility for more than $12 billion. It was later sold to Lenovo for less than $3 billion.
If the HubSpot deal goes through, it would be nothing like what the classic villain has done over the last 20 years.
At first glance, you might think that the deal wouldn't make sense. Why would Google spend three times more than ever to get into inbound marketing – the CRM and marketing automation business?
At second glance it makes a lot of sense.
I don't know if you've noticed, but I and others at CMI spend a lot of time discussing privacy, owned media, and eliminating the third-party cookie. I just talked about this two weeks ago. It's really happening.
All this oxygen being taken away from the ad tech space is a compelling argument that Alphabet should move away from third-party data and classic surveillance-based marketing.
Yes, this potential acquisition is about data. HubSpot would give Alphabet the keys to the kingdom of 205,000 business customers — and to their customers' data, almost certainly numbering in the tens of millions. Alphabet would also gain access to the content, marketing and sales information those customers consumed.
Conversely, the deal would give HubSpot customers an immediate boost to build more targeted programs in the Alphabet ecosystem and upload their data to enable even more personalized experiences on their own websites and connect them to the Google Workspace infrastructure.
Add in the idea of Gemini and you can see how Google could monetize its generative AI tool, beyond how you can use it in ads on search results pages.
What an acquisition could mean for HubSpot customers
Maybe I'm stretching myself here, but imagine this world. As a Hubspoogle customer, you can access an interface that prioritizes your own media data (e.g. your website, e-commerce catalog, blog) when Google's Gemini answers a question.
According to recent reports, Google may build a paywall around the new premium features of its artificial intelligence-powered Search Generative Experience. Think of this as the new gateway for marketing. In other words, users can subscribe to Google's AI for free, but Hubspoogle customers can access this data and use it to create targeted offers.
Acquiring HubSpot would immediately make Google Workspace a stronger competitor to Microsoft 365 Office for small and medium-sized businesses by giving them the ADDITIONAL ability to do inbound marketing.
But in the world of leased land, where Google is the landlord, the government will take note of the acquisition. But – and it's a big but, I can't lie (yes, I just did that). The big question is whether this acquisition dance can take place without running afoul of regulatory issues.
Some analysts say it shouldn't be a problem. Others say, “Yeah, that wouldn't work.” Anyway, would anyone do anything about it in an election year? That's a completely different story.
What marketers should consider
So, what do I take with me?
There's little chance that Google will address this issue, but stranger things have happened. It would be an exciting market disruption.
The safe bet is this. The acquisition conversation – as if you needed more data points – says that being good at your own media is a must to attract and build audiences, and leveraging that first-party data to drive better communication and collaboration with your customers.
It's only a matter of time before Google makes a move. Maybe they're just testing the waters, but they'll move here. But no matter what you do, if your customer data is in order, you are on the road to success.
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Cover image by Joseph Kalinowski/Content Marketing Institute
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