Twitter prepping to sell ads in others' apps, report says

The social network reportedly has a plan to boost revenue by targeting ads off Twitter.

Twitter will use its purchase of mobile ad exchange MoPub to sell ads beyond its service, according to a report in the Financial Times.

The soon-to-go-public social network will use its data to target and sell ads in others' mobile apps and on Web sites once the MoPub deal closes, the Financial Times reported, citing people familiar with the company's plans. The additional advertising channel could help the company get closer to profitability by boosting revenue well beyond the $254 million it made in the first half of the year. Twitter lost more than $69 million during the same period.

Twitter did not immediately respond to a request for comment.

In September, Twitter agreed to acquire MoPub for around 14.8 million shares, which translates to nearly $305 million in value. MoPub manages and optimizes ads for mobile applications on iOS and Android, as well as runs a real-time bidding exchange.

Twitter said in its S-1 filed earlier this month with the Securities and Exchange that it plans to "grow MoPub's current business, including by extending advertising across the mobile ecosystem through the MoPub exchange."

The idea, then, of combining Twitter's Interest Graph -- the key asset that maps all the people, connections, and interactions on Twitter -- with MoPub's technology and distribution seems like a no-brainer as the company looks to diversify its business ahead of the public offering.

 

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