[Updated 7/1/2014, 4:30pm. See below.] Twitter has snapped up a mobile ad retargeting startup from New York as it beefs up its digital advertising technology muscle.
On Monday, news broke that the social media network acquired TapCommerce. Re/code reported the deal to be around $100 million; however, no official price has been given. This is the latest in a series of acquisitions by Twitter in the mobile adtech space.
TapCommerce’s platform puts digital ads from brands in front of people after they looked at a product with their smartphone or tablet but initially chose not to make a purchase. The idea is to give brands another chance at winning over potential customers. TapCommerce works with such companies as eBay, JackThreads, Zulily, and Gilt.
Others in mobile ad retargeting include ActionX, also headquartered in New York. [Added comments from Evan Schwartz.] ActionX CEO Evan Schwartz says the deal helps validate the relevance of mobile ad retargeting platforms. “The first wave of mobile adtech was about getting people to download apps,” he says. “Now people are looking for new tools and technology to get consumers to purchase something.” Back in November, TapCommerce raised $10.5 million in a Series A round. Its investors include Bain Capital Ventures, RRE Ventures, Nielsen Ventures, Metamorphic Ventures, Eniac Ventures, and NextView Ventures.
Yesterday, TapCommerce CEO Brian Long wrote a blog post about his company being acquired, calling it a “natural fit in Twitter’s expanding mobile advertising stack.”
Meanwhile, Twitter put out a blog post describing TapCommerce as part of its broader plans in advertising technology. That includes last fall’s acquisition of mobile ad exchange MoPub, as well as last month’s acquisition of Namo Media, whose software helps produce custom native ads for mobile.
