On Monday, Twitter officially announced they had acquired TapCommerce. TapCommerce is a mobile advertising company who’s focus is on re-engaging consumers who have previously downloaded advertised apps. This announcement came alongside the new global roll out of Twitter’s mobile app installs, allowing 3rd party companies to promote their applications within the Twitter mobile app.
Reports have stated that Twitter will be purchasing the company for $100 million, however neither company went into detail on the financial terms of the deal.
Twitter vice president for online sales Richard Alfonsi commented on this acquisition via a blog post. He stated, “Advertisers spend aggressively to get new users, but re-activating existing or previous users can provide just as attractive a return on investment.”
He continued to reiterate that it is important for many companies to attract former customers back to their products. The goal of purchasing TapCommerce was in enabling companies to advertise new applications to users who’d previously downloaded their applications. By marketing through Twitter, companies are more likely to see returning consumers which is highly important.
TapCommerce identifies mobile users and their previous mobile activities to tailor “re-targeted” ads more effective in driving sales. These ads are displayed via mobile applications. Presumably on Twitter’s end, the goal of purchasing TapCommerce was to create a new revenue stream that also worked through the mobile version of Twitter.
According to TapCommerce CEO Brian Long, the company currently processes 15 billion targeted ad impression bids on a daily basis across 50,000 applications worldwide.
This announcement marks one of many recent acquisitions from Twitter in their efforts to expand their advertising empire. Twitter purchased MoPup, a company focused on mobile advertising last year. More recently Twitter acquired Namo Media who specialist in native advertising for mobile apps.
This also marks one of many recent changes to the mobile version of Twitter. Last month, the company announced users would be able to embed tweets on their smartphone or tablet devices via the Android and iOS version of the website.