Twitter New Advertising Program Is Not Just Another ‘So What?’

Source: courtesy of Twitter
Just six weeks after acquiring mobile advertising platform MoPub, Twitter Inc. (NYSE: TWTR) is launching a native advertising platform for mobile apps. What that means is that the ad will look pretty much like any other tweet on your mobile device. Think of MoPub’s program as a “Promoted Tweet” on steroids.

A native advertising platform has become a “must-have” for social media players like Twitter and Facebook Inc. (NASDAQ: FB). Facebook launched its version, which places ads as “Suggested Posts” directly into a user’s news feeds. The more the ads look like posts in the feed, the more likely the ads are to get clicks.

What makes the MoPub platform a step forward is that it gives app developers the ability to work with advertisers to promote a developer’s own features and apps; to drive revenue from direct advertisers; and to leverage MoPub’s ad marketplace partners. According to MoPub, “This single solution means [an app developer] can provide a customized ad experience for [its] partners without building custom campaigns for each advertiser.”

What is important is that the capability for the social media giants to provide native advertising is the new big thing in driving revenues in the mobile device space. Facebook’s doing it, LinkedIn Corp. (NYSE: LNKD) has adopted native advertising, Google Inc. (NASDAQ: GOOG) is following along, and even The New York Times (NYSE: NYT) has begun trying it out.

The important thing to Twitter shareholders is that the company is getting serious about generating some revenue and, eventually, a profit. Twitter’s shares closed up 5.7% today at $55.33 after posting a new post-IPO high of $55.87.

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