By: Katie Roof
Twitter (TWTR) had multiple mobile ad announcements on Monday, including its acquisition of TapCommerce, a New York advertising technology firm. The social media company is also introducing ads for mobile app installations.
Although Twitter has not yet revealed the price, Re/Code reports that TapCommerce is being purchased for about $100 million. The company uses a “retargeting” strategy to try to get users to look at apps they have previously downloaded.
“Advertisers spend aggressively to get new users, but re-activating existing or previous users can provide just as attractive a return on investment,” Richard Alfonsi, VP of Twitter Global Online Sales, said in a blog post. “TapCommerce enables real-time programmatic mobile ad buying across multiple exchanges reaching over 50,000 apps.”
TapCommerce has raised $12 million in funding from RRE Ventures, Metamorphic Ventures, Bain Capital Ventures, Eniac Ventures and Nextview ventures. Its most recent round was in November.
Earlier on Monday, Twitter unveiled its new plans for mobile app installs, similar to a service that has proven successful for Facebook (FB). Users will see app installation suggestions in their news stream.
Twitter had been beta testing this service and reportedly had strong results. This could be a significant new way for Twitter to generate revenue.