Google + HubSpot. Is it a thing?
This week, there has been a flurry of news about Google possibly buying HubSpot.
The prospect dismayed some. He pleased others.
But is it possible? Is it even possible? What would it mean for marketers? What does consideration even mean to merchants?
Well, we asked CMI’s Chief Strategy Officer, Robert Rose, for his take. Watch this video or read below:
Why Alphabet might want HubSpot
Alphabet, the parent company of Google, is apparently considering acquiring inbound marketing giant HubSpot.
The potential price could range from $30 to $40 billion. This would be Alphabet’s largest acquisition by far. The current deal holding that title happened in 2011 when it acquired Motorola Mobility for more than $12 billion. He later sold it to Lenovo for less than $3 billion.
If the HubSpot deal happens, it would be out of character with what the classic bad guy has been doing for the past 20 years.
At first glance, you might think the deal wouldn’t make sense. Why would Google want to spend three times as much money as it has ever spent to get into inbound marketing — the CRM and marketing automation business?
On 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, proprietary media, and third-party cookie removal. I just talked about it two weeks ago. It’s really happening.
All this oxygen being absorbed by the ad tech space makes a compelling case that Alphabet needs to differentiate itself from third-party data and classic surveillance-based marketing.
Yes, this potential acquisition is about data. HubSpot would give Alphabet the keys to its kingdom of 205,000 business customers — and their customer data that almost certainly runs into the tens of millions. Alphabet would also gain access to the content, marketing and sales information those customers consumed.
Instead, the deal would provide an immediate spearhead for HubSpot customers to build more targeted programs in Alphabet’s ecosystem and leverage their data to create even more personalized experiences on their own properties and connect them to Google’s infrastructure. Workspace.
When you add the idea of Gemini, you can start to see how Google can monetize its AI builder beyond how to use it in ads on search results pages.
What the acquisition could mean for HubSpot customers
I may be stretching myself here, but imagine this world. As a Hubspoogle customer, you can access an interface that prioritizes owned media data (eg your website, e-commerce directory, blog) when Google’s Gemini answers a question.
Recent reports also suggest that Google may build a paywall around its new AI-powered Generative Search Experience premium features. Think of this as your new gateway to marketing. In other words, users can sign up for Google’s AI for free, but Hubspoogle’s customers can access that data and use it to create targeted offers.
The HubSpot acquisition would immediately make Google Workspace a stronger competitor to Microsoft 365 Office for SMBs as they would get the ADDED capability of inbound marketing.
But in the world of rented land where Google is the landlord, the government will consider the acquisition. But — and it’s a big but, I can’t lie (yeah, I just did). The big but is whether this acquisition dance can happen without running into regulatory issues.
Some analysts say that shouldn’t be a problem. Others say, “Yeah, it wouldn’t work.” Either way, would anyone touch it in an election year? That’s a whole other story.
What marketers need to realize
So what’s my package?
It’s a remote possibility that Google will do this harshly, but stranger things have happened. It would be an exciting market disruption.
That’s the sure bet. The acquisition debate — as if you needed more data points — says you need to be good at proprietary media to engage and build audiences, and use that first-party data to better communicate and engage with your customers.
It’s only a matter of time before Google makes a move. They may just be testing the waters now, but they will move here. But whatever they do, if you’ve got your customer data in order, you’ll be set for success.
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Cover image by Joseph Kalinowski/Content Marketing Institute
