In another sign of the growth and importance of mobile in online advertising, Twitter has spent a rumored $350 million to acquire startup MoPub, an exchange for mobile advertising. This is yet another sign that Twitter is setting itself up for a strong IPO in the not-too-distant future, as well as hedging its bets on the continued growth of mobile. The platform is ideally suited for it, thanks to its design as a 140-character, real-time system.
Late Monday, Twitter broke the news, announcing it had acquired MoPub. As Mike Isaac reports on All Things D, that “terms of the deal were not disclosed” but those who have some insider info pegged the price at “$350 million in stock.” Furthermore, this move by Twitter makes it the company’s biggest purchase in its history. This means that Twitter, like many others in online advertising, are throwing a lot behind mobile and making sure they have the tech, talent, and tools to take advantage of mobile advertising.
So what exactly does this acquisition do for Twitter? Well, as Mike reports, this purchase gives Twitter a better ability to keep “track of its ad inventory on an up-to-the-minute basis,” something that Twitter has become known for since its service thrives in real-time events compared to Facebook or Google+.
More importantly, as Mike writes, “Twitter can now offer the right ad space at the right time to third-party publishers, who can in turn automatically buy ads based on pre-set conditions.” When it comes to online advertising, timing is incredibly important since everything moves so fast online. This definitely makes Twitter more enticing to advertisers as they look for ways to best reach consumers in a timely and organized manner.
Is Twitter on a Shopping Spree?
This latest acquisition from Twitter comes is the company’s third large acquisition for the year. Many in the field are speculating (and rightly so) that Twitter is building up the foundation for a strong IPO. As Chris Isidore reports on CNN Money, Twitter, “believed to be weighing an initial public offering some time in 2014, has been buying a number of tech startups.”
In February, Twitter bought Bluefin Labs to enhance its ability to measure social media reaction to TV shows. In April they purchased the music app and service We are Hunted to boost its role in media and music.
New Coca-Cola Ad Features Live Tweets!
Before signing off on this post, I wanted to share with everyone an ingenious ad that Coca-Cola released in Romania. Todd Wasserman at Mashable reported yesterday that “a Romanian Coca-Cola ad appears to have broken new ground in integration between Twitter and TV.” What Coca-Cola managed to do is combine live tweets with a television commercial. That’s proof enough to me that TV advertising and online advertising can get along just fine. Be sure to check the link for the full story on the ad and to watch it yourself!
What do you think about Twitter’s latest acquisition? When will the company go public?
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