April 23, 2012, 10:30 AM

Twitter beefs up its advertising with an acquisition

Hotspots.io’s team will work on developing analytics tools for advertisers on Twitter.

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Twitter has acquired social media analytics vendor Hotspots.io. The microblogging site will fold Hotspots’ team into what Twitter calls its revenue engineering team, which oversees the microblogging service’s advertising program.  Twitter did not say how much it paid for the company.

“Our focus will be on developing analytics tools for Twitter’s advertising and publishing partners,” write the company’s founders, Alexander Spicer, Ashutosh Singhal, and Matt Huang, in a post on Hotspots.io.

Hotspots.io aims to help marketers maximize social media return on investment by diving into what it calls “actionable and accessible analytics.” For instance, a demo on its web site shows how the company measured the social media reach—in terms of Twitter mentions, overall social reach and the amount of money spent—of Super Bowl ads run by companies such as shoe manufacturer Skechers USA Inc. and fashion retailer H&M. The company’s founders say they will continue that work on a much larger scale at Twitter.

The acquisition marks the latest move by Twitter to beef up its advertising revenue. The microblogging service last month launched mobile ads. And, in February, it rolled out its first self-service ad format.

Twitter’s revenue is expected to reach $259.9 million this year, an 86.3% jump from $139.5 million in 2011, according to a forecast by research firm eMarketer.

John Jackson, CEO and founder of DecisionStep, will speak at the Internet Retailer Conference & Exhibition 2012 in a session entitled “Social shoppers share their secrets: How e-retailers spin that knowledge into gold.”

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