Wednesday - Aug 23, 2017

Twitter acquires TapCommerce, amongst the leaders in mobile retargeting

Twitter acquires TapCommerce, amongst the leaders in mobile retargeting

Online social networking and microblogging service Twitter has announced the acquisition of New York ad-tech firm TapCommerce, for around $100 million.

TapCommerce, founded in 2012, have developed software which specialises in targeting potential customers after they have downloaded a particular app, and maintaining contact with them. The software has proved to be an especially good investment for online companies that offer specific services, among them travel and mobile gaming as well as for e-commerce companies.

Announcing the acquisition, a spokesperson for Twitter said that bringing TapCommerce on-board was part of a strategy to establish a new marketing division based around mobile apps, with the social media giant in the throes of releasing a series of mobile-app install ads aimed towards a wider advertising community. The new ads, which figure in Twitter’s news feed and have proven to be already, especially popular among game developers, include links which direct consumers to download apps directly from online stores run by both Apple Inc. and Google Inc.

Twitter, almost always in the shadow of Facebook, has shown once again with this latest acquisition that they are prepared to invest in order to increase user growth. Despite failing to move into profit mode since their founding in 2006, Twitter’s revenue, the vast bulk of which comes through advertising, increased by more than 100% in the first quarter of 2014 arriving at just over $250 million.

While that figure seems very presentable it fades into total insignificance when compared to that of Facebook which reached $2.5 billion for the same quarter, with $2.27 billion of that coming from advertising, with mobile-app install ads making up 59% of its total revenue in the first quarter, up from 30% a year earlier.

Now with the acquisition of TapCommerce, Twitter may be in a better position to prove to existing and potential advertisers that it’s targeting abilities are at least as powerful as those of Facebook.

Advertisers will be able to specifically target users based on information gathered such as search keywords, interests, TV show preferences and tailored audiences.

TapCommerce is just one of a steady stream of acquisitions that Twitter made during the last year to bulk up its advertising power, with the largest being the $350 million acquisition of MoPub in October of last year, following that up in April, with the acquisition of Gnip, in a move to provide more conclusive data to advertisers. Twitter’s shopping spree continued into June, when it acquired native ad specialist Namo Media.

The reported $100 million buyout will be good news for venture capitalists Bain Capital Ventures and RRE Venture who have invested between them $10 in TapCommerce since they were founded in 2012.

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