Mobile apps ad partnership spikes Twitter stock price
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.
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Lucy is a stay at home mom that loves to write. Mother of three, she keeps herself busy, between writing and playing taxi cab! She is originally from Los Angeles and keeps herself in the trend loop with many social networking groups she has formed. She attended UCLA and has found her home as a writer for now and in the future.