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In a surprising move last week, Lithium Technologies acquired the social media measurement company Klout. The deal doesn’t appear to be officially closed, but most experts report that a deal has been signed and is waiting for the finishing touches. The most surprising fact about this acquisition is that Lithium has reportedly spent $100 million to buy Klout.
Founded in 2008, Klout measures social influence and assigns a score to each user ranging from 1-100, based upon the activity of that user’s connected social media accounts. Sounds simple right? Not exactly.
The question that most people have with Klout is how exactly is influence measured? Supposedly, there is an algorithm that measures influence, but people are skeptical about whether this algorithm is accurate. It’s also believed that there are many ways to game the system into giving higher scores. This skepticism has led many people to ignore Klout scores all together.
However, a $100 million offer is nothing to scoff at. Lithium Technologies is a software company that provides various tools that help companies manage social customer experience. They’ve worked with clients such as AT&T, Best Buy, Verizon and Acer. Clearly, Lithium sees Klout as a valuable social asset, especially considering Klout’s new services.
Recently, Klout updated its services to help users become more influential by focusing more on content creation. This move by Klout makes it easier for users to create, share and find relevant content. This is very different from their core service but in many ways it’s a much more valuable tool for individuals and companies alike. For example, one new aspect of Klout called “on the rise” alerts users about content that is on the verge of trending.
Continue to read on our blog: Lithium Acquires Klout: Is Social Influence More Important Than We Thought?
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