On Monday, Twitter announced that it acquired a mobile advertising startup called TapCommerce to initiate a new kind of advertising and benefit from a profitable advertising business centered on mobile apps.
TapCommerce is a New York based ad-tech company which specializes in targeting those customers that have downloaded certain app and persuade to come back by showing relevant ads based on the browsing habits of the users.
TapCommerce mainly focused on advertising to mobile devices. It is has been found that Twitter acquired TapCommerce for less than $100 million. Twitter is all set to roll out the mobile app install ad program after achieving success in its test run.
Kelton Lynn who is the Product Manager for revenue with Twitter expressed through a blog post that at the earlier stage of this year, they had proclaimed a novel way for advertises to provide its users with mobile app installs. The beta testing was found to be successful and hence they have gone ahead to launch mobile app advertising to all the advertisers across the world.
According to Twitter, by using the new advertising service, advertisers will be able to better target their potential customers by using parameters like gender, location, keywords, user's device and language. Mobile app promotions have already worked wonders for Facebook since the time mobile ad service was launched in 2012. It was reported that in the first quarter of this year, 59 percent of the revenue of Facebook was generated through mobile ad business.
The ads will now show up on the news feeds of Twitter will come with links that will allow users to download the apps through Apple App Store and Google Play Store. In the recent past, when Twitter was conducting its beta tests on mobile ads, users might have observed ads that suggested them to download apps or try games. In simpler terms, Twitter can make good money when users click on the ad directly on Twitter or hit the install button.
The mobile ad business for Twitter can become successful and rake in more money depending on the targeting abilities of the microblogging site. The ads that will be displayed will also be served via MoPub which has the ability to reach over one million unique devices.
TapCommerce provides its services to various companies like eBay and Zulily. By incorporating with data-tracking companies, TapCommerce can show up appropriate ads to the customers. For instance, if a person has been looking for specific pair of trouser on a retail app but did not purchase it, TapCommerce will show up ad of the same pair of trousers while he is browsing on a different app.
In the recent past, Twitter has been concentrating more on advertising. It acquired MoPub in October 2013 in a $350 acquisition deal. This year in April, it acquired Gnip, a data partner. In June, Twitter took over Namo Media, an ad specializing company. Twitters move of launching mobile app install ad shows that it intends to make more money through existing users in an attempt to handle slow user growth.