Twitter has just acquired MoPub with a consideration in the region of $350 million in stock changing hands. I know; another growth strategy by the giant social media networks. While it may be so at least going by the rumors that Twitter is set to file for an IPO before the end of next year, this is big news in the mobile advertising world.
Win-Win Situation for the Parties Involved
In any acquisition, it is important to lay out the benefits that the parent or acquiring company can bring to the acquired business unit and whether they are likely to add or destroy value. MoPub is a mobile-focused advertising company. Its main capabilities that Twitter doesn’t have is that it has and ad exchange and a real-time bidding ad server. Twitter on the other hand already has a stable and working mobile network offering that is expected to contribute a huge portion of the projected $1 billion revenue in 2014. MoPub founders get to relish at the exchange of $18.5 million MoPub equity for $350 million Twitter private equity and Twitter gets to benefit from the unique capabilities of MoPub. The real victors however, are all the people involved in the mobile advertising world.
Mobile Advertising As It Is
Mobile advertising has often been criticized by both advertisers and the ‘victims’ of advertising for its targeting or lack of it. This translated to poor return on investment for advertisers and to frustrations to users who were tortured by the drudgery that is looking at adverts that are not targeted. This is all set to change for the better as ads posted to users of Twitter on the mobile devices will depend on users’ previous web or mobile usage history.
Focused Mobile Advertising
The fact that more and more people are accessing the Internet and more importantly social media networks through their mobile devices explains the attention that mobile advertising is being given at the moment. Just like any other form of marketing, mobile advertising’s power comes from its audience-the users of mobile devices. This lot is not easy to please. Focused mobile advertising is a start. Twitter has a reputation for being a game changer. It is poised to revolutionize its already burgeoning mobile advertising network by targeting users based on their previous web and mobile usage history as well as their location. This is thanks to its MoPub acquisition. Advertisers and users alike should be looking at this deal with a smile on their faces.