Sprout Social has officially announced its acquisition of Tagger Media. This venture marks Sprout Social’s strategic foray into the rapidly growing influencer marketing domain.
For the uninitiated, influencer marketing has rapidly transformed how brands, especially small businesses, connect with their target audience. Influencers, often with massive followings on social media, offer brands a more personalized touchpoint with potential customers. By integrating Tagger’s capabilities, Sprout Social aims to address the growing demands of brands to merge core social media strategies with influencer marketing seamlessly.
Justyn Howard, CEO and Co-Founder of Sprout Social emphasized the synergy between the two platforms: “By bringing Tagger’s influencer marketing software into Sprout’s suite of solutions, we have the opportunity to deliver the next generation of social insights to our customers to fuel business strategy and measure the full ROI of holistic social investments. Tagger and Sprout have a shared mission for building powerful and intuitive software, and we’re excited to bring our industry-leading products and teams together.”
Founded in 2015, Tagger Media rose to prominence by simplifying influencer marketing for brands of all scales. Its platform, recognized by the Global Influencer Marketing Awards and G2, assists brands in influencer discovery, campaign management, competitor strategy analysis, trend reporting, and, most importantly, measuring ROI. These functionalities, especially the ability to quantify the return on influencer marketing investments, can be a game-changer for small businesses, offering them clarity in their digital strategies.
Pete Kennedy, Founder and President of Tagger Media, voiced his enthusiasm about the merger, stating, “We started Tagger because we saw extraordinary potential in the creator economy and knew there was an opportunity to build disruptive and innovative software for brands. We’re delighted to execute together on a shared vision to define this rapidly emerging market.”
From a financial standpoint, the acquisition, which was sealed on August 2, 2023, stands at a cash consideration of $140 million. The transaction was supported by funds from Sprout Social’s reserves and its fresh revolving credit facility. Joe Del Preto, CFO, expressed his optimism on this financial venture, forecasting that Tagger would amplify Sprout’s ARR and ACV growth rates, with positive implications on gross and operating margins by 2024.
What This Means for Small Business Owners
Sprout Social’s decision to integrate influencer marketing could be a watershed moment for the small business community. The move acknowledges the rising importance of influencers in the digital marketing realm and underscores the need for businesses, regardless of their size, to adapt to these shifts. With platforms like Sprout Social making influencer marketing more accessible and measurable, even small businesses can potentially leverage influencers more effectively to enhance their brand visibility and customer engagement.
In the rapidly changing digital landscape, businesses need to stay updated and flexible. The acquisition of Tagger by Sprout Social serves as a reminder that, in the world of digital marketing, evolution is not just beneficial – it’s necessary.
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