Not too long ago, Twitter announced its acquisition of MoPub, a mobile advertising company, for $350 million. It seems that the social networking site is looking to invest more money to increase its potential on mobile advertising and promotions as they just announced the acquisition of another mobile ad firm.
Richard Alfonsi, Twitter?s VP for Global Online Sales, recently announced thru their blog that they have acquired TapCommerce, a mobile retargeting and re-engagement advertising company, although he did not disclose any details regarding the terms of the deal.
According to another reliable source, Twitter has agreed to acquire TapCommerce for almost $100 million.
?Consumers are starting to use their phones not just to install and use apps, but for making purchases of both virtual and real-world products and services,? he said in the post.
TapCommerce uses mobile advertisements to attract consumers to ?re-engage? them to purchase products and services they might be interested in. The firm is able to send mobile ads using 50,000 mobile applications which translate to around 1 billion devices, according to Alfonsi.
?Advertisers spend aggressively to get new users, but re-activating existing or previous users can provide just as attractive a return on investment,? he said. ?Combined with our other ad solutions, advertisers will be able to drive conversions and ROI with mobile consumers on and off of Twitter.?
By its looks, Twitter has been struggling to keep the growth of users which have possibly led to several management changes in the company, including the resignation of Ali Rowghani as chief operating officer last month.
Last quarter, Twitter?s advertising sales produced $220 million of its entire $243 million revenue and yet their shares have gone down by 36 percent during the year. Alfonsi looks to increase that number through their acquisition of TapCommerce.
Meanwhile, their counterpart MoPub, will continue to work with multiple demand partners through its marketplace and provide the same open and neutral access to the ad space as they have always done.
Image Source:??TapCommerce Blog Post