Digital marketing group dotDigital’s (LON:DOTD) collaboration with cross-channel marketing company e-Dialog will rise its profile in the US and open other opportunities, broker Charles Stanley said today.
The tie-up will make dotDigital’s email marketing platform available within eBay’s X.commerce platform.
eBay Powersellers, as well as Magento merchants, will be able to use the platform, which Charles Stanley analyst Richard Nunn said is an “exciting development” for the company as it exposes itself to a global user base.
Nunn added the opportunity for dotDigital could be substantial as Magento sold 1.5 million SAAS services when it had half the number of customers it does today.
Nunn added: “The other important highlight is this helps raise the profile of dotDigital in the US market place and opens up other business development opportunities.”
The platform, which will be branded e-Dialog Express, is intended to enable sellers to manage abandoned shopping baskets more effectively, boost new acquisitions and increase order values.
The product will generate revenue through a monthly base fee, and additional fees based on e-mail volumes which it will share with e-Dialogue when the volumes increase over time.
dotDigital group chief executive Peter Simmonds said: “This version of dotMailer, e-Dialog Express, will provide a unique opportunity to promote the product’s powerful features and ease of use to thousands of merchants worldwide.”
dotDigital said dotMailer was chosen for its suitability for Magento merchants, of which there are 110,000 worldwide, and its integration with the X-commerce platform.
The product, which is being unveiled at Magento’s Imagine eCommerce conference in Las Vegas today, will be the only e-mail solution sold to Magento merchants.
Magento was acquired by eBay in 2011 and became part of the X.commerce business.
Nunn said: “Our 12 month view continues to be very positive so we reiterate our Buy recommendation, with a price target of 14 pence.”
The share price is 11.25 pence per share.
