Upon purchasing MoPub by Twitter
I had like pending task, write about buying MoPub by Twitter, as occurred in September when I took the summer break. And the truth is that unlike others, was an operation that I, in part, if I was waiting for Twitter, not to buy MoPub, but any ad exchange along the lines of: Microsoft to buy AdECN, Yahoo to buy RightMedia, Google with: DoubleClick and AdMob and Facebook creating FBX, its own ad exchange. And it’s not the only one.
And the operation is highly strategic in the face of imminent IPO, demonstrating its potential to generate profits in the coveted mobile environment, and enabling Twitter, not only market their own advertising within the social network, adding features that programmable marketing technology brings, such as real-time bidding or RTB. But on the other hand, create “its own AdSense” like Google, and allow third-party sites (especially mobile sites and mobile apps), join Twitter to generate revenue from their advertising platform.
For this importance of the operation, Twitter have paid $ 350 million in stock (or so it is believed, because it was not officially released) in what has been its largest acquisition to date. Because even though it was saying and it was rumored that they were planning to develop its own ad exchange from scratch, have finally seen that it was better to acquire another company already in operation and integrating together its developments due to the time savings. MoPub on 3 years has revenues already of $100 million/year. But above all, to the acquisition of knowledge and talent, customer and media: mobile apps sites to incorporate immediately to its offer, and buy time in the face of cash flows show the output face the parquet where it seems, is expected to debuts in 2014.
What you might not discussed much until now is that for an ad exchange works well Programmable marketing technology RTB, you need huge volumes of user data, that such advertising is profitable through retargeting, something that few can achieve as well as the giants that already commented before, among which may include Twitter, thanks to embed tweets, embedded profiles, and other widgets scattered across the Internet, and especially the fact consistency of these thanks to that the user is currently logged always stop by the website where you go or even if you change your desktop to mobile device is still currently logged out. What they do now Twitter claws get very far, and are able to record the information required so that now thanks to MoPub, can charge all sense and convert that data into cash.
What do you think can make this purchase for the other players in the sector? Will this purchase was decisive for the success of his anticipated debut?
