The micro-blogging social network has taken a heavy focus on advertising on smartphones and tablets.
Twitter experienced a considerable jump in its stock price – initially leaping by over 6 percent – when it announced that it would be adding promoted tweets on third party mobile apps, as well as smartphone friendly websites, as a part of a broader advertising distribution program that it has now launched.
This new mobile advertising strategy is designed to help to broaden the reach of the social network’s ads.
This will allow Twitter to be able to reach into other mobile apps and websites in order to place ads in front of a much larger number of viewers. It will expand the number of potential ad viewers well beyond the 284 million estimated users who actively use the micro-blogging service every month. The first partners that have joined with Twitter in this advertising program include Yahoo Japan and the Flipboard newsreader app.
There are already thousands of brands that advertise on Twitter and they could now benefit from ads on additional mobile apps.
According to a post that Twitter added to its official blog, “For the thousands of brands already advertising on Twitter, these new partnerships open a significant opportunity to extend the reach of their message to a larger audience.”
This announcement was made very shortly before the financial results for the fourth quarter were announced by the company. The stock price has been facing some considerable pressure over the last while. In fact, when compared to its 52 week high point that brought it to $67.24, it has faced a drop of a whopping 40 percent. This meant that the 6.5 percent increase that it saw at the initial announcement of its new third party advertising partnerships was an especially welcome change from the direction that it had been taking.
This is believed to be only the start of the partnerships that will be forming between Twitter and various mobile apps and websites around the world. It will be interesting to watch as new applications come aboard and to view the impact that this will have on the stock price over time.
The micro blogging site has announced that it is close to the release of this option.
It has now been revealed that Twitter’s latest initiative in the area of mobile social media marketing will be the release of a new product that will make it possible for app developers to be able to install ads that will help to encourage application downloads.
This format is called an app install ad and its goal is to help to attract more marketers to Twitter.
Specifically, Twitter is seeking to use the mobile social media marketing opportunity to draw marketers from the game and e-commerce industries. Once the ads within mobile Twitter feeds are clicked, the user is redirected to the page of the advertiser within an app store where the application from the ad can be downloaded.
The social network is likely using this mobile social media marketing move to help keep its IPO promises.
At its initial public offering, Twitter had stated that it would be boosting its mobile ad offerings and that is exactly what this step appears to be. Since November, the stock for the company has skyrocketed by 78 percent and analysts are currently predicting that its annual revenue will increase to nearly double, reaching $1.2 billion by the close of this year. This, despite the fact that user growth has been slowing down.
The mobile channel is a central element to the business at Twitter, as it is over mobile devices that the user base is growing at its fastest rate. Furthermore 75 percent of the company’s ad revenue comes from that channel, alone.
Other social networking companies have been highly successful in the use of app install ads. They were introduced in October 2012 by Facebook and by last year they had brought in 245 million downloads. Candy Crush was advertised by King Digital Entertainment over Facebook and that app has now become one of the most popular games for those devices. King has just experienced its own IPO.
Now, Twitter will be using this mobile social media marketing opportunity for its own purposes and it has been testing its app install ads for a number of weeks to ensure that they are functioning as expected.
