This week, Twitter (TWTR) agreed to purchase TapCommerce, a top player in the mobile ad space. While no price tag was disclosed, the buzz is that the deal came to about $100 million. The acquisition also comes on the heels of a big run for Twitter stock, which is up about 25% since late May.
First, let’s get some background on TapCommerce: Founded in 2012, the company saw lots of potential with mobile ad retargeting. Granted, this type of technology has been around for quite some time, but it has traditionally been focused on the desktop.
Example: Suppose you visit an ecommerce site and check out some products but do not make any purchases. Then you visit other sites and see ads pop up for that same ecommerce site. These generally have a higher conversion rate because you have already indicated some level of interest in the products. Read