The article discusses the growing importance of social media advertising. More ad dollars are being directed towards social media, over the traditional advertising channels. A new emerging trend is video ads, which is developing rapidly. Facebook and Google are the main beneficiaries of these developments, with an annual growth rate of over 50% in their ads and market share — with ad sales revenue of approximately $11B.
Twitter is trying to ‘get their hands’ on this huge profit generator – and push mobile ads and videos on their new mobile version.
Twitter has bought Tap Commerce (reportedly for $100mm) – a company that specializes in the “re-engagement” of users who have downloaded apps and services on their mobile devices, but later ignore them. Known as mobile retargeting, the possibility of enticing users to re-activate products can be less costly for advertisers than fighting over new users, and Twitter says previous users “can provide just as attractive a return on investment” without going through continuous on-boarding processes.
Together with the Tap Commerce team, Twitter will be able to offer mobile app marketers more robust capabilities for app re-engagement, tools and managed service solutions for real-time programmatic buying, and better measurement capabilities.
My question: Twitter is known to lag after Facebook and Google, in terms of innovation, profitability and market share. In our class discussions, it is hard to foresee which route they would pursue in the future, in order to differentiate themselves from a growing number of competitors and value offerings. Could this be the revamp the platform needs? Will it work? Will people buy into it?