Namo Media has now been acquired by the microblog giant to help to enhance the advertising business.
Twitter has just acquired Namo Media, a native ads startup, to help to enhance its social media marketing offerings as it boosts its level of competition with Google and Facebook in order to bring in a larger level of mobile advertising revenues.
Shares for the social network shot upward by 3 percent following the announcement of the purchase.
In fact, they rose by 99 cents in order to reach $33.89. Clearly the overall feeling is that this social media marketing move is a strong one. One of the main reasons is that native ads are coming into favor with advertisers who are attempting to reach consumers more effectively by way of the devices that they use the most. Increasingly, that means that they will need to be able to communicate with prospective customers over their smartphones and tablets.
The social media marketing native apps blend in with mobile app and webpage content.
This is a much more natural and less invasive form of advertising than banners and pop ups. Because of this, they are more appealing to both consumers and marketers.
According to Kevin Weil, the vice president of product at Twitter, according to one of his blog posts, “We have been working to bring native ads to mobile app publishers in order to create a more seamless and less intrusive ad experience for users.”
As of the time of the writing of this article, the terms of the acquisition had not yet been released. That said, estimates have placed the buyout price at around $50 million or so. This is based on the current trend toward mobile marketing, which is growing at an explosive rate. In fact, within the next few years, it is expected to start to outpace the growth that is experienced over personal computers such as laptops and desktops.
The reason is that a rapidly growing number of consumers are accessing the web on their smartphones and tablets, particularly for quick searches and to access their Twitter, Facebook and Google+ accounts. This has caused them to spend less time on their PCs and has made social media marketing over mobile a considerable opportunity.