Optimizely this morning divulged that it has acquired Zaius Inc., the startup behind an artificial intelligence-powered customer data platform of the same name. 

Optimizely, officially Episerver Inc., provides cloud services that help enterprises manage their websites and target visitors with personalized marketing. Its technology is used by big brands such as Hewlett Packard Enterprise Co., Toyota Motor Corp. and eBay Inc., as well as thousands of others. 

Episerver took on the Optimizely brand after acquiring startup Optimizely Inc. last September for a reported $600 million. 

Boston-based Zaius, in turn, has built a customer data platform that enables enterprises to map out their buyers’ preferences and use that information to create better marketing campaigns. Zaius facilitates a better understanding of buyers by combining customer information normally scattered across multiple systems into a single customer profile that’s easier to work with. Based on those profiles, marketers can find customers with similar interests and show them personalized promotions.

Optimizely will use Zaius’ technology to extend its existing features for managing websites and marketing campaigns.

As part of its product suite, Optimizely provides tools that let enterprises test different versions of website promotions and measure how well each variation is received by customers. Besides helping to drive more purchases, those tests also provide valuable data on different buyers’ interests. Optimizely’s vision is to combine that data, as well as other customer information from its products, with Zaius’ analytics technology to give companies a more complete understanding of buyer behavior. 

Optimizely is also gaining new AI capabilities through the deal. Zaius’ customer data platform uses machine learning to generate predictions such as which product a customer is likely to buy next and what merchandise a company should emphasize more in promotional campaigns. The AI-generated insights, the startup says, can help enterprises realize a bigger return on their marketing investments. 

“In a world where first-party relationships and data are essential for digital leaders, being able to bring data across assets, behaviors and customers into a single view is necessary to drive the right outcomes,” said Optimizely Chief Executive Alex Atzberger.

The acquisition of Zaius and its customer data platform launches Optimizely into a crowded section of the marketing software segment. Salesforce.com Inc., Microsoft Corp. and SAP SE have all introduced their own customer data platforms over the last few years. Twilio Inc. also gained a foothold in this market in late 2020 when it acquired Segment Inc. for $3.2 billion.

The intensifying competition is a reflection of the large revenue opportunities ahead. When it announced the acquisition of Segment, Twilio told shareholders that enterprises are spending $2 billion annually on customer data platforms and an additional $17 billion on other marketing tools that such platforms could eventually replace.

The market’s growth has also caught the attention of venture capital firms. Two customer data platform startups, Leadspace Inc. and Lexer Pty Ltd, have announced funding rounds since the beginning of February. 

For its part, Zaius raised more than $50 million from investors such as Insight Partners prior to the acquisition. Optimizely isn’t disclosing the acquisition’s financial terms.

Photo: Optimizely