Last week, Twitter bought mobile advertising publisher MoPub for a rumored $350 million in stock. This deal happened in light of the social media giant’s move to file for an IPO. The valuation of a company for the initial public offering of stock includes future potential revenue, so the timing of this deal makes a lot of sense. While the company has been successful in recent years, the acquisition of MoPub will only improve Twitter’s revenue from mobile advertisements.
Does this mean more ads are coming to Twitter? Probably. The company already uses ads on its mobile and desktop clients. However, 20 percent of users utilize third-party sources, and currently Twitter does not place ads into those apps. With MoPub’s help, Twitter can expand its advertising capabilities to all supported platforms and increase ad revenue immensely.
As discussed in this Bloomberg Television’s “In The Loop” segment, Twitter is a highly successful mobile advertising platform. While it may not have as extensive an audience as some platforms, namely Facebook, Twitter does have key features that contribute to its mobile advertising success. For example, its real-time conversation capabilities offer advertisers to pinpoint and reach target audiences as events are happening. The MoPub acquisition offers Twitter other services to further expand on its already successful mobile advertising platform. MoPub has previously used location-based mobile advertising, and Twitter has reportedly been preparing to do the same.
MoPub’s expertise in mobile advertising through a variety of platforms will help Twitter expand its marketing from only native apps to yet untapped third-party sources. With the imminent valuation of the company in anticipation of the IPO, increased breadth of advertising exposure can only help the company.
What all this means for Twitter users is as of yet a bit unclear. Twitter will most likely continue with its sponsored tweets on its native platforms, but perhaps these will spread to third-party apps as well. Previously ad free platforms may soon see advertisements, but it is still somewhat unknown. What is known is that Twitter is a force in the world of mobile advertising and is poised to continue its growth.
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Elvekrog, J. (2013, September 12). With the mopub acquisition, twitter embraces the ecosystem.VentureBeat, Retrieved from http://venturebeat.com/2013/09/12/with-the-mopub-acquisition-twitter-embraces-the-ecosystem/
Ha, A., Cutler, K. & Lunden, I. (2013, September 9). Twitter buys mopub for $350m to up the ante in mobile advertising. TechCrunch, Retrieved from http://techcrunch.com/2013/09/09/twitter-said-to-acquire-mopub/
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Kessler, S. (2013, September 12). Twitter has filed for an ipo. Fast Company, Retrieved from http://www.fastcompany.com/3017372/twitter-has-filed-for-an-ipo