Twitter Rolls Out Mobile-App Install Ads Worldwide

Twitter has been testing mobile-app install ads over the past few months, and the company has now announced the expansion of these ads worldwide.  The ads direct users to download new apps, or to use apps that they already have on their smartphones, and Twitter’s initial tests proved to be successful.

“Mobile app promotion leverages Twitter’s existing powerful targeting capabilities, including interest, keyword, TV targeting and tailored audiences to help [app publishers] reach [a] desired audience,” explained Kelton Lynn, a product manager at Twitter, in a recent blog post.  Lynn continued by saying that publishers “can also layer on gender, geo, language and mobile platform targeting to pinpoint the users who are best suited for their app.”

Mobile-app install ads have been extremely successful for Facebook’s growing mobile ad business, which made up 59% of its total revenue in the first quarter, up from 30% a year earlier.  Facebook initially launched mobile-app install ads in late 2012, and the social network’s ability to help advertisers target individuals has been very powerful based on the wealth of information that it has about its users.

To be successful in its foray into mobile-app install ads, Twitter will need to prove that its targeting abilities are as powerful as Facebook’s.  Twitter is providing an automated self-serve system that allows advertisers to set up a campaign that targets users based on many different factors, including keywords, interests, TV show preferences and tailored audiences.  The ads will also be served through MoPub, Twitter’s mobile advertising exchange, which the company says can reach more than one billion unique devices.

Twitter also recently debuted a “cost-per-app-click” pricing and prediction model as well as a new dashboard to track user engagement.  With this system, publishers are only charged when users click to go to the App Store or Google Play from their ad, or when they open their app directly from Twitter.  Social media marketers are showing great initial interest in Twitter’s expanded app advertising efforts.

Max Kalehoff, senior vice president, marketing at SocialCode, a Twitter marketing platform partner, spoke about this new initiative.  “It’s incredibly important for app developers and clients to get exposure for these mobile apps.  With so much competition in the app stores, having the ability to drive a large user base straight to download from their Twitter feed is a huge advantage,” said Kalehoff.

Following last year’s acquisition of MoPub, Twitter recently agreed to buy Namo Media and pair their respective native advertising technology to increase its ad offerings.

A recent forecast from BIA/Kelsey predicts that during the period from 2013 to 2018, social media advertising revenues will grow from $5.1 billion to $15 billion, representing a compound annual growth rate (CAGR) of 24%.  During this same period, social display ad revenues are expected to grow from $3.3 billion to $5.6 billion, representing a CAGR of 11.3%.  However, U.S. native social advertising will swell from $1.8 billion to $9.4 billion, representing a CAGR of 38.6%.  Due to this massive growth, BIA/Kelsey expects native social advertising to eclipse social display for the first time by 2015.