September 11, 2013, 11:12 AM

Twitter plans to offer real-time ad bidding

The microblogging platform buys mobile advertising exchange MoPub.

Lead Photo

Twitter has bought mobile-focused advertising firm MoPub. Neither company disclosed the deal’s terms.

MoPub sells a variety of services, including a mobile ad exchange that enables advertisers to bid in real time for ad space in mobile apps. Twitter says it will continue to maintain that service, which means that Twitter will essentially work as an ad sales middle man between marketers and mobile app developers.

Twitter also plans to use MoPub’s technology to develop a real-time bidding system for its advertising platform, much like Facebook’s instant ad-bidding system Facebook Exchange. Buying Twitter ads currently requires marketers to manually adjust their targeting parameters.

By integrating real-time bidding into its mix, advertisers will be able to “more easily automate and scale their buys,” says Kevin Weil, Twitter’s vice president, revenue product. “The two major trends in the ad world right now are the rapid consumer shift toward mobile usage and the industry shift to programmatic buying,” Weil wrote in a blog post. “Twitter sits at the intersection of these and we think by bringing MoPub’s technology and team to Twitter, we can further drive these trends for the benefit of consumers, advertisers and agencies.”

The microblogging service could generate $308.03 million worldwide in mobile advertising revenue this year, according to research firm eMarketer Inc. That’s roughly 1.85% of the worldwide market for mobile ads.

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