Salesforce Buys Software that Tracks Purchases through Google AdWords

Hosted application provider Salesforce.com has purchased start-up Kieden Corp., which helps customers track sales leads generated with Google AdWords:

“The software works by identifying which keywords attracted Web surfers to click on a particular Google advertisement, then request product information. It attaches that data to a file that Salesforce software uses to track leads throughout the entire sales cycle — from initial interest to completed sale.“

What’s interesting here is the evolution in metrics surrounding Google AdWords. One, Salesforce, which is the sixth largest CRM provider, is apparently seeing enough customer interest in AdWords to warrant the purchase. Two, there is a clear market need to better understand the click trail leading to a purchase through AdWords, and the customers behind the purchase. If I understand Kiedan’s software correctly, then it will provide both types of information.

Three, systems like Kieden’s add another level of security, albeit an indirect one, against click fraud. The more advertisers know about legitimate customers and click trails, the better they can detect spurious clicks.

Yahoo’s next gen ad platform, which we saw a glimpse of at the SES conference earlier this month, will incorporate click trail data. The platform will show marketers what keywords led up to the keyword that triggered a purchase. For example, say someone searches for “digital cameras” and then searches for “Sony Cybershot” before they purchase a Sony Cybershot from a retailer. The keywords “Sony Cybershot” will still get 100% credit for the purchase, but the marketer will see that the user searched for “digital cameras” prior to searching with the trigger keyword.