Twitter announces acquisition of TapCommerce
Twitter recently announced that it will be acquiring a company called TapCommerce that specializes in mobile ads. With this acquisition strategy, Twitter looks to increase its mobile advertising capabilities.
According to Tech Crunch, Twitter also recently announced that it would be offering advertisements that promote mobile apps, adding to its advertising capabilities. As Tech Crunch notes, the acquisition of TapCommerce could also be beneficial in this area.
Since 80 percent of Twitter's ad revenue is generated through mobile, it makes sense to bring technology on board that would enhance this aspect of their operations even further. TapCommerce is used for mobile retargeting, meaning that it helps companies identify potential customers and encourage purchasing through mobile, according to the company's website.
"Our focus on creating engaging brand experiences for mobile consumers aligns perfectly with Twitter's product and core values, making TapCommerce a natural fit in Twitter's expanding mobile advertising stack," Brian Long, CEO and Founder of TapCommerce said on the TapCommerce blog.
Last fall, Twitter purchased MoPub, a company that helps distribute mobile ads. According to the TapCommerce website, their platform is already integrated with MoPub.
As we have discussed previously, technology acquisitions can help companies gain tools and technologies they did not have access to previously, that can be used to complement and enhance existing offerings. In this case, Twitter is gaining technology from TapCommerce to enhance its existing mobile capabilities and increase revenue generated from advertising. The acquisition is reportedly a $100 million deal.
With the growth of mobile, businesses making technologies in this area may be approached with a merger or acquisition deal. An experienced M&A advisor can help you plan and execute a successful acquisition strategy.