Twitter, in an effort to position itself as an effective platform when it comes to mobile advertising – has acquired MoPub, a San Francisco based startup that helps publishers manage their mobile ad inventory. The deal is said to be $350 million in stock, according to several media sources.
Other than monitoring ad inventory, the startup also offers a mobile advertising exchange service which Twitter plans to use, in order to “build real-time bidding” into its ads platform so that advertisers could easily automate and scale their buys on Twitter.
Launched in 2010, MoPub has managed to acquire publisher customers like WordPress, Opentable, Flixster and BET Networks. Moreover, the startup has been said to have reached a $100 million revenue run rate, earlier this year. According to Mopub, the arrival of real time bidding in mobile ad ecosystem helped the company to reach such a milestone. Since Q4 2012, their revenue has tripled and “nearly 20% of the nearly two billion ads served per day on the platform are transacted through RTB.”
The acquisition makes perfect sense for Twitter, given that its mobile ads were a key source of income for the platform during the last couple of years. Twitter’s mobile ads were generating more revenues for the site as compared to its desktop version. By bringing MoPub’s team onboard Twitter can help bolster its mobile platform ads and benefit its clients, advertisers with the use of MoPub’s technology.
Talking to Techcrunch Jim Payne, CEO, MoPub said that he will become Twitter’s vice president of exchange.
Well, if the reports about Twitter’s possible IPO later next year are not wrong, the social network seems to be preparing for an IPO – using an aggressive expansion technique.
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