Twitter has bought 'MoPub', a start up focusing on mobile ad exchanges, in a deal estimated at $350 million. Twitter is planning to use MoPub's technology to venture deeper into mobile advertising.
Kevin Weil said Twitter also plans to use MoPub's technology "to build real-time bidding into the Twitter ads platform so our advertisers can more easily automate and scale their buys."
"MoPub's technology lets mobile application publishers manage their inventory and optimize multiple sources of advertising direct ads, house ads, ad network, and real-time bidding through the MoPub Marketplace," Twitter's Kevin Weil said in a blog post.
He added, "The two major trends in the ad world right now are the rapid consumer shift toward mobile usage, and the industry shift to programmatic buying. Twitter sits at the intersection of these, and we think by bringing MoPub's technology and team to Twitter, we can further drive these trends for the benefit of consumers, advertisers, and agencies." Twitter said in a blog post that it plans to keep MoPub’s mobile ad exchange running.
MoPub CEO Jim Payne said in his blog post that there will be no major changes post acquisition. He wrote: “It’s important to underscore that our commitment to you, the publisher, will not change. In fact, it will be strengthened. Twitter will invest in our core business and we will continue to build the tools and technology you need to better run your mobile advertising business.”
According to industry tracker eMarketer, Twitter is expected to earn $582.8 million globally in ad revenue this year and nearly $1 billion by next year. Twitter is already doing well in the mobile ads space and the MoPub acquisition will further strengthen the company.