In a strategic move that promises to shape the future of mobile advertising, Twitter has just announced the sale of its MoPub mobile ad platform to AppLovin.
With a staggering $1.05 billion in cash, this deal signals Twitter’s intent to double its revenue to an impressive $7.5 billion by 2023.
Meanwhile, AppLovin is set to leverage MoPub’s extraordinary tools, aiming to process over $15 billion of annualized advertiser spend by 2023.
This captivating acquisition is sure to make waves in the industry, and we delve into the details next.
mopub sale
In a transaction worth $1.05 billion in cash, Twitter has completed the sale of its MoPub mobile ad platform to AppLovin.
MoPub, which generated approximately $188 million in annual revenue for Twitter in 2020, will now be integrated into AppLovin’s larger in-app mediation platform.
This acquisition is expected to close in early 2022, with the MoPub platform set to be sunset on March 31, 2022.
Twitter plans to redirect its resources towards performance-based ads, SMB, and commerce in order to double its revenue to $7.5 billion or more by 2023.
The sale has been unanimously approved by Twitter’s board, and both Twitter’s stock and AppLovin’s shares saw a positive increase following the announcement.
Key Points:
- Twitter completes $1.05 billion cash sale of MoPub mobile ad platform to AppLovin
- MoPub generated $188 million in annual revenue for Twitter in 2020
- MoPub to be integrated into AppLovin’s in-app mediation platform
- Acquisition expected to close in early 2022, with MoPub platform set to be sunset on March 31, 2022
- Twitter plans to focus on performance-based ads, SMB, and commerce to double revenue by 2023
- Sale approved by Twitter’s board, resulting in positive increase for both Twitter’s stock and AppLovin’s shares
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💡 Did You Know?
1. The MoPub sale, which occurred in 2013, was a historic acquisition by Twitter, with a value of approximately $350 million. This move allowed Twitter to expand its advertising capabilities and further monetize its platform.
2. MoPub, a mobile ad exchange platform, was co-founded by Jim Payne and Bryan Atwood in 2010. The company quickly gained popularity by helping mobile app publishers increase their revenue through in-app advertising.
3. MoPub’s unique name is derived from a combination of “mobile” and “publications.” This reflects the company’s core mission of enabling publishers to monetize their mobile apps and provide a platform for advertisers to reach their target audiences.
4. Perhaps not widely known, but MoPub operates as an independent subsidiary under Twitter. Despite being an integral part of Twitter’s advertising infrastructure, MoPub continues to maintain its own distinct brand and operational structure.
5. MoPub’s real-time bidding (RTB) system, known as MoPub Marketplace, is one of the largest in-app ad exchanges in the industry. It enables advertisers to compete in real-time auctions to display their ads to relevant mobile app users, maximizing both publisher revenue and advertiser reach.
Mopub Sale: Twitter Completes $1.05 Billion Cash Sale To AppLovin
Twitter has completed the sale of its mobile ad platform, MoPub, to AppLovin for $1.05 billion in cash. This acquisition combines MoPub’s expertise in mobile advertising with AppLovin’s resources in in-app mediation.
MoPub has been a valuable asset for Twitter, generating about $188 million in revenue in 2020. However, Twitter has decided to shift its focus toward performance-based ads, SMBs, and commerce, aiming to double its revenue to $7.5 billion or more by 2023.
AppLovin plans to integrate MoPub’s platform into its own in-app mediation platform. This will enhance its services and provide a more comprehensive solution to clients. With MoPub’s software being used by 45,000 mobile apps and reaching 1.5 billion users, AppLovin expects to process over $15 billion of annualized advertiser spend by 2023.
The acquisition is expected to close in early 2022, pending regulatory approvals. MoPub users will have a transition period to adapt to the changes, with the platform set to be sunset on March 31, 2022. However, the MoPub Dashboard and Reporting will still be available until April 8, 2022.
The sale of MoPub to AppLovin has been unanimously approved by Twitter’s board, reflecting confidence in the potential of this acquisition. AppLovin, a mobile gaming company, can now expand its offerings and strengthen its position in the market.
Following the announcement, Twitter’s stock rose by 2% and AppLovin’s shares were up by 9%. These market reactions demonstrate optimism about the strategic move and the potential for future growth.
Mopub Generated $188 Million In Revenue For Twitter In 2020
In 2020, MoPub, Twitter’s mobile ad platform, generated approximately $188 million in revenue for the company. MoPub’s success can be attributed to its efficient ad inventory tracking system, allowing companies to monitor and manage their ads in real-time. This feature has been widely utilized by 45,000 mobile apps, reaching an impressive 1.5 billion users.
Despite its accomplishments, Twitter has decided to refocus its efforts and resources towards performance-based ads, SMBs, and commerce. This strategic shift is driven by Twitter’s goal to double its revenue to reach $7.5 billion or more by 2023. By redirecting its focus, Twitter aims to explore new revenue streams and cater to the evolving needs of its advertisers and users.
By prioritizing performance-based ads, Twitter intends to provide greater transparency and accountability for advertisers. This will enable them to accurately measure the impact and effectiveness of their campaigns.
Another key initiative for Twitter is its emphasis on SMBs. The platform aims to offer tailored advertising solutions for small and medium-sized businesses. This will help them expand their online presence, reach a wider audience, and generate revenue. With a comprehensive suite of advertising tools and resources, Twitter aims to empower SMBs to succeed in the digital landscape.
Additionally, focusing on commerce allows Twitter to tap into the growing trend of e-commerce. It aims to capitalize on the increasing demand for online shopping as more users turn to social media platforms for product discovery and purchasing decisions. Twitter aims to provide a seamless shopping experience that integrates with its app and website.
Twitter’s shift in strategy aligns with its vision for the future and commitment to delivering value and innovation to its users and advertisers.
Overall, Twitter’s decision to refocus its efforts on performance-based ads, SMBs, and commerce reflects its dedication to driving growth and adapting to the changing landscape of digital advertising.
Twitter Redirects Resources Towards Performance-Based Ads, SMB, And Commerce
Twitter has made the strategic decision to redirect its resources towards performance-based ads, small and medium-sized businesses (SMBs), and commerce. This shift in focus is driven by Twitter’s ambition to double its revenue to $7.5 billion or more by 2023 and reflects the evolving needs and demands of advertisers and users.
By prioritizing performance-based ads, Twitter aims to provide advertisers with greater transparency and accountability. Through advanced analytics and measurement tools, advertisers can gauge the effectiveness of their campaigns and make data-driven decisions to optimize their ad spend. This approach ensures that advertisers can maximize their return on investment and reach their desired target audience effectively.
In addition to performance-based ads, Twitter recognizes the importance of supporting SMBs in their digital advertising efforts. Small and medium-sized businesses often face unique challenges and constraints when it comes to marketing, and Twitter aims to provide tailored solutions to help them succeed. By offering user-friendly advertising tools and resources, Twitter seeks to empower SMBs to grow their online presence, expand their customer base, and drive revenue.
Furthermore, Twitter acknowledges the growing prominence of e-commerce and the role social media plays in driving online shopping. With more users turning to platforms like Twitter for product discovery and purchasing decisions, the integration of commerce into Twitter’s offerings is a logical step forward. By providing a seamless shopping experience within its app and website, Twitter aims to capture a share of the booming e-commerce market and create new opportunities for revenue growth.
This strategic redirection of resources highlights Twitter’s commitment to innovation and its dedication to delivering value to both advertisers and users. By focusing on performance-based ads, SMBs, and commerce, Twitter aims to stay ahead of the curve and position itself as a leader in the ever-evolving digital advertising landscape.
Twitter Aims To Double Revenue To $7.5 Billion Or More By 2023
Twitter has set an ambitious goal of doubling its revenue to $7.5 billion or more by 2023. This target reflects the company’s confidence in its growth potential and its strategic initiatives to drive revenue across various avenues.
To achieve this objective, Twitter has outlined a multi-pronged approach that includes redirecting resources towards performance-based ads, small and medium-sized businesses (SMBs), and commerce. By focusing on these areas, Twitter aims to tap into new revenue streams and cater to the evolving needs of its advertisers and users.
With a renewed emphasis on performance-based ads, Twitter seeks to provide advertisers with greater transparency and accountability. By offering advanced analytics and measurement tools, advertisers can accurately assess the impact and effectiveness of their campaigns. This focus on performance ensures that advertisers can optimize their ad spend and maximize their return on investment, driving revenue for Twitter.
The focus on SMBs is another key component of Twitter’s revenue growth strategy. By offering tailored advertising solutions and support for small and medium-sized businesses, Twitter aims to help these companies grow their online presence, expand their customer base, and drive revenue. With user-friendly advertising tools and resources, Twitter empowers SMBs to compete in the digital landscape and achieve their business objectives.
Furthermore, Twitter recognizes the potential in the booming e-commerce industry. By integrating commerce into its offerings, Twitter aims to capture a share of the market and create new revenue streams. As more users turn to social media platforms for product discovery and purchasing decisions, Twitter seeks to provide a seamless shopping experience that allows users to shop directly within its app and website.
These strategic initiatives underscore Twitter’s determination to remain competitive and drive revenue growth. By doubling its revenue to $7.5 billion or more by 2023, Twitter aims to solidify its position as a dominant player in the digital advertising space and continue providing value to its advertisers and users.
FAQ
1. What factors contributed to the success of the recent MoPub sale?
The success of the recent MoPub sale can be attributed to several key factors. Firstly, MoPub’s strong position in the mobile advertising industry played a crucial role. With its robust technology platform and extensive network of app developers and advertisers, MoPub offered a valuable asset that potential buyers found appealing. This strong market presence and reputation attracted interested parties and contributed to the success of the sale.
Furthermore, the increasing demand for mobile advertising also played a significant role. As more and more users are shifting towards mobile devices, advertisers are eager to capture this growing audience. MoPub’s ability to offer a comprehensive solution, enabling advertisers to reach their target audience effectively, resonated with buyers who recognized the potential for future growth and revenue generation. These factors combined to contribute to the success of the recent MoPub sale.
2. How has the MoPub sale impacted the mobile advertising industry?
The sale of MoPub has had a significant impact on the mobile advertising industry. MoPub, a leading mobile ad exchange platform, was acquired by Twitter in 2013. This acquisition has allowed Twitter to strengthen its position in the mobile advertising space and compete with other industry giants like Google and Facebook. By integrating MoPub’s technology with Twitter’s existing advertising capabilities, the acquisition has provided advertisers with a more comprehensive and efficient platform to reach their target audience across mobile devices.
Moreover, the MoPub sale has also spurred innovation and consolidation within the mobile advertising industry. With Twitter’s backing, MoPub has been able to invest in research and development, leading to the introduction of new advertising formats and targeting capabilities. This has encouraged other players in the industry to enhance their offerings, leading to a more competitive landscape. Additionally, the MoPub sale has led to increased acquisition activity in the mobile advertising space, as companies strive to strengthen their position and expand their product portfolios in this rapidly growing industry.
3. What were the reasons behind the decision to sell MoPub?
The reasons behind the decision to sell MoPub were primarily related to strategic focus and financial considerations. MoPub was a mobile ad exchange platform that Twitter acquired in 2013, but as the company evolved, it sought to streamline its operations and focus on its core business of social media and real-time information sharing. Selling MoPub allowed Twitter to divest from the ad exchange business, freeing up resources and aligning its efforts with the social media platform that was its main source of revenue and growth.
Additionally, selling MoPub helped Twitter improve its financial position. The company was dealing with a range of challenges, including slower user growth and declining ad revenue. By selling off non-core assets like MoPub, Twitter was able to generate cash and potentially reduce its financial burden, allowing it to invest in other areas of its business or pay down debt.
4. What are the expected implications of the MoPub sale for publishers and advertisers?
The sale of MoPub could have implications for both publishers and advertisers in the mobile advertising industry. For publishers, the sale could potentially result in changes to the platform’s policies, algorithms, and overall approach to monetization. They may see modifications to ad formats, targeting capabilities, or revenue sharing agreements with MoPub. Advertisers, on the other hand, could experience shifts in how they can reach their target audiences and the effectiveness of their campaigns. They may need to adapt their strategies or budgets depending on any changes that the new owners implement. Overall, the expected implications will depend on the specific plans and actions of the new owners of MoPub.