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Twitter extends its reach with advertising inside apps

Twitter announced Thursday morning that it will reach 1 billion mobile devices through its MoPub network, the place to for ads inside hundreds of apps, according to Reuters. This strategy will allow Twitter to increase its advertising business with the apps on not only its site but other social network sites.

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Money in the mobile app economy continues to grow and the app developers spend money to advertise on major social sites like Facebook. The app downloads brings the ‘net’ companies like Facebook and Apple receive the 30 percent of the app purchase payment.

The plan to increase revenue by ads was started last Nov. when Twitter acquired MoPub for about $350 million. Twitter numbers show that is reaches a limited audience of about 240 million users on Twitter Web site and its mobile apps.

Install ads are a creative and well used source of revenue by Facebook and acknowledged by CEO and co-founder Mark Zuckerberg as the number revenue source. Twitter began over a year ago to allow the placement of special tweet formats that can feature different types of multimedia content. Since then, the company has focused on supporting this type of ads. It has concluded that it is becoming an app ad economy.

As Twitter aggressively pursues this ad strategy TechCrunch posted today that Vice-President Kevin Weil considers this as an ‘easy and scalable way to drive installs and app engagement, both on Twitter and off Twitter.’ Business advertisers can take advantage of its Twitter site and pay for Promoted Tweets and take part in ad campaigns through both Twitter and the MoPub network.

Twitter fit another piece into its ad strategy with the purchase of Gnip, the social data provider for Twitter data. Now Twitter has the data base of Gnip’s customer base and can continue its use of Gnip without interruption. This deal allows Twitter to control the revenue stream and cuts out middle man backlog between customers of Gnip and Twitter. There are no changes in Gnip’s business plan at this time but it will remain open as to how Gnip and customers work together in the future.

These steps into the ad and app world according to Weil statement yesterday on TechCrunch can allow Twitter to offer ‘one seamless experience across targeting, creative, and measurement, and then one of the really powerful things is combining that with the scale of the MoPub advertising exchange.’

The winner in the app ad economy can be the consumer who will receive value based ads with content for products and services that lead to lifestyle improvement. Twitter has an opportunity to reach the billion member challenge on how to capture the consumer and create a new social media relationship through a smart advertising concept and grow its revenue.